3 min readUpdated: Jun 11, 2026 12:04 PM IST
An Indian-American man was arrested in California on Wednesday for duping a bank of close to $100 million, news agency Reuters reported.
“Mahender Makhijani, a lawful permanent resident from India living in Corona del Mar, was arrested this (Wednesday) morning on a federal criminal complaint charging him with defrauding a bank out of nearly USD 100 million,” Bilal Essayli, First Assistant US Attorney for the Central District of California, said.
According to Federal prosecutors, a 44-year-old Makhijani doctored the title records of insurance policies, used as collateral, to make them look more valuable than they actually were. He used a complex web of shell companies to mislead a federally insured bank, which ended up losing nearly $100 million.
Who is Mahender Makhijani?
An Indian American financier, Makhijani controlled Cantor Group V LLC, a company in Newport Beach with a lending relationship with the bank he defrauded. According to The New York Post, Makhijani enjoyed a lavish lifestyle in California’s Newport Beach.
According to the prosecutors, Makhijani is known to often don designer sunglasses even while at home, wear pricey linen shirts, and was accustomed to using private jets for travelling. He maintained two mansions side by side — the second reserved for his in-laws.
His fleet of luxury cars included a Bentley, a Porsche, and a Mercedes G-Wagon.
However, Makhijani acquired the money illegally, according to authorities, and the true value of his wealth still remains unknown. “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,” New York Post quoted a criminal complaint.
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How Mahender Makhijani defrauded the bank
The Bank had advanced nearly $100 million to Makhijani’s Cantor to originate or buy loans secured by real estate, under the terms of their agreement.
Following this, Cantor was supposed to pledge the loans it secured and their supporting collateral to the Bank, repaying the bank from the loans’ proceeds.
From September 2024 to April 2025, Makhijani allegedly made changes to the title insurance policies to make them appear like Cantor was in the first lien position with respect to certain real estate serving as collateral.
Prosecutors say he falsified the titles by manually changing metadata fields or by printing and scanning altered documents.
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After doctoring the title policies, Makhijani had his then-employee submit the false title policies to the Bank. Makhijani also allegedly lied on calls with the Bank’s representatives about the title issues that the Bank had identified over several teleconferences.
Makhijani also blackmailed his subordinates — he hosted rave parties with sex workers, which were attended by bank employees, later threatened to expose those who participated in the twisted activities, New Yor Post reported.
A Green Card holder, Makhijani, may face a jail sentence of a maximum 30 years if convicted.
“Our special agents followed the money through layered transfers and disguised accounts, uncovering a scheme designed to deceive at every turn. When individuals manipulate documents and abuse financial systems for personal gain, IRS CI will expose the truth and ensure they are held accountable,” said Darren Lian, Acting Special Agent in Charge, IRS Criminal Investigation’s Los Angeles Field Office.
— with inputs from Reuters and New York Post
