Newsmakers

A 44-year-old Indian-origin financier was arrested in California on Wednesday on charges of defrauding a federally insured US bank of nearly $100 million (approximately Rs 954 crore). Mahender Makhijani, who has been residing in the US on a Green Card, was taken into custody at his lavish Newport Beach residence and could face up to 30 years in prison on conviction.

Bill Essayli, First Assistant US Attorney for the Central District of California, confirmed the arrest: "Mahender Makhijani, 44, a lawful permanent resident from India living in Corona del Mar, was arrested this morning on a federal criminal complaint charging him with defrauding a bank out of nearly $100 million."

The Fraud
According to an affidavit filed with the complaint, Makhijani controlled Cantor Group V LLC, a Newport Beach-based company with a lending relationship with the bank. Under the terms of their agreement, the bank advanced nearly $100 million to Cantor to originate or buy loans secured by real estate. Cantor was supposed to then pledge the loans it secured, and their underlying collateral, to the bank, paying back the bank from the loans' proceeds.

Prosecutors said the alleged fraud was carried out between September 2024 and April 2025, during which Makhijani and a subordinate are accused of forging documents using digital tools, altering metadata, and submitting fabricated records to secure financing. Makhijani or an associate allegedly edited the title insurance policies in Adobe and then changed or removed the metadata by printing out the altered documents before scanning them.

The US Attorney's Office further stated that the accused also provided misleading explanations through spreadsheets and phone calls to reinforce the false claims.

Sex Parties Used for Blackmail
Court documents also showed that Makhijani is accused of hosting 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.

The documents claimed that Makhijani even threatened subordinates, saying he would “kill” them and put their “family on the street” and “their kids on welfare".

Makhijani has also been charged with a series of alleged strongarm tactics, including bringing armed henchmen to take over hotels and a restaurant in an upscale Southern California neighbourhood. In one notable clash over the Hotel Laguna, his team sparked chaos that temporarily shuttered properties and led to a massive arbitration award against him exceeding $1 billion. He reportedly bragged about fleeing to India if caught, while living in dual mansions.

Assets
Proceeds of the alleged fraud were funnelled into private jets, a fleet of supercars including Bentleys and Porsches. The money, prosecutors say, remains largely unrecovered, shielded through a web of companies and hidden assets.

What Happens Next
Authorities noted that the complaint contains allegations only and that Makhijani is presumed innocent unless and until proven guilty in court. He is scheduled to make his initial appearance before a US District Judge in Santa Ana, California. Makhijani faces a maximum sentence of 30 years in prison if convicted.