Indian-origin financier Mahender Makhijani accused of $100M bank fraud, blackmail in California

An Indian-origin financier is accused of running a $100 million bank fraud scheme in California. He lived a double life of luxury, intimidation and blackmail, including hosting parties with sex workers and later using those events to pressure attendees, reports the New York Post.

44-year-old Mahender Makhijani was arrested on Wednesday after armed federal agents raided his mansion in Corona del Mar, an exclusive coastal neighbourhood in Newport Beach, California. He is charged with bank fraud and faces up to 30 years in prison if convicted.

Makhijani defrauded a local bank of nearly $100 million by falsifying real estate documents and inflating the value of properties used as collateral. The money has not yet been recovered. He used Newport Beach-based Cantor Group V LLC and a network of companies to carry out the scheme. He and a subordinate altered title insurance records between September 2024 and April 2025 using Adobe software, changed metadata, and submitted forged documents to the bank while giving misleading explanations in calls and spreadsheets.

But the allegations against Makhijani go beyond financial fraud, reports the New York Post. According to court documents and witness statements, he hosted private parties involving drugs and sex workers, some of which were attended by bank employees. He then used knowledge of what happened at these events to blackmail participants and keep control over staff and associates. He even threatened subordinates, saying he would “kill” them and put their “family on the street” and “their kids on welfare.” He is also accused of blackmailing employees after the gatherings. He ran his operation through intimidation, threats and violence. He directed associates to target rivals, break into businesses and pressure competitors. In one case, he placed eviction notices at homes of a rival’s family members and even used a billboard to accuse an opponent of robbery.

Video evidence cited by prosecutors shows Makhijani in designer clothing directing associates during attacks on security guards, including smashing windows and seizing documents. Agents arrested him at his home early Wednesday after a dawn raid involving armed officers. He was led out in handcuffs and taken to jail after briefly appearing in pajamas.

Makhijani lived a lavish lifestyle, travelling by private jet, wearing designer clothing and owning luxury cars including a Bentley, Porsche and Mercedes G-Wagon. He kept two mansions side by side, one of which was reserved for his in-laws. Much of his wealth still remains untraceable. “Makhijani has significant financial resources, but the government has not fully traced and accounted for those resources, which are almost certainly not held in Makhijani’s name,” the complaint states.

The case also overlaps with a long-running business dispute involving Hotel Laguna. In 2023, clashes linked to the dispute allegedly led to violence at the hotel, forcing temporary closures. In May, arbitrators awarded about $1.34 billion to businessman Mohammad Honarkar, finding that Makhijani had breached agreements and committed fraud. Makhijani had previously told associates he would flee to India if caught.