Indian-origin CEO accused of orchestrating $500 mn loan fraud against BlackRock

New Delhi: Global investment giant BlackRock and several top lenders are grappling with losses exceeding $500 million after what has been described as a “breathtaking” loan fraud allegedly masterminded by Indian-origin telecom executive Bankim Brahmbhatt, according to a Wall Street Journal report.

Brahmbhatt, who owns telecom-services firms Broadband Telecom and Bridgevoice, is accused of fabricating invoices and accounts receivable that were pledged as collateral to secure massive loans. A lawsuit filed in the US in August claims his companies presented falsified financial statements and diverted funds offshore to India and Mauritius.

BlackRock’s private-credit arm, HPS Investment Partners, along with French lender BNP Paribas, are among those affected. BNP Paribas, which helped finance HPS’s loans to Brahmbhatt’s entities, has declined to comment. The alleged scam surfaces months after BlackRock acquired HPS to expand its private-credit operations.

HPS began lending to Brahmbhatt-linked companies in 2020, with total exposure reaching about $430 million by 2024. The firms reportedly borrowed through Carriox Capital and related entities within Brahmbhatt’s telecom network. Deloitte was engaged by HPS for asset verification, and CBIZ for annual audits, though neither firm has made public statements.

The alleged fraud began to unravel in July 2025, when an HPS employee noticed irregularities in customer email addresses used for invoice verification. Investigations found that several domains mimicked legitimate telecom companies, and fabricated correspondence was used to fake customer relationships. When confronted, Brahmbhatt allegedly dismissed the claims and stopped responding to calls.

An HPS employee visiting his Garden City, New York office found it abandoned. Neighbours reported no staff activity for weeks, even as several luxury cars—two BMWs, a Porsche, a Tesla and an Audi—were seen at his residence. Following the discovery, HPS hired US law firm Quinn Emanuel and CBIZ to probe the matter. Their investigation reportedly found that all customer emails and several contracts dating back to 2018 were forged. A Belgian telecom company, BICS, confirmed that emails attributed to it were fraudulent.

The lenders’ lawsuit alleges Brahmbhatt built “an elaborate balance sheet of assets that existed only on paper,” transferring funds to offshore accounts in India and Mauritius.