BlackRock Alleges $500 Million Fraud by Indian-Origin Telecom CEO
Investment giant BlackRock and other lenders are attempting to recover hundreds of millions of dollars, alleging a massive financial fraud by Bankim “Sam” Brahmbhatt, the Indian-origin CEO of Broadband Telecom and Bridgevoice. A lawsuit filed in August claims Brahmbhatt created fake invoices and customers to secure over $500 million in loans backed by false collateral, a scheme lenders described as “breathtaking” in scope.
Key Takeaways:
- BlackRock and other lenders allege a $500+ million fraud by telecom CEO Bankim Brahmbhatt.
- The scheme involved fake invoices and phantom customers dating back to 2018.
- Brahmbhatt’s companies have filed for bankruptcy, and his current whereabouts are unknown.
Who is Bankim Brahmbhatt?
Bankim Brahmbhatt is an Indian-origin entrepreneur who built a telecom group including Broadband Telecom, Bridgevoice, and financing arms like Carriox Capital. His companies claimed to provide infrastructure and voice services to major global telecom operators.
Operating from Garden City, New York, Brahmbhatt’s company offices now appear vacant. The WSJ reported several luxury cars, including a Tesla and Porsche, were seen outside his listed residence. In August 2025, his companies filed for bankruptcy the same day he sought personal bankruptcy protection. BlackRock’s team believes he may have returned to India.
The Alleged Fraud Scheme
The alleged fraud began in 2020 when HPS Investment Partners (later acquired by BlackRock) started lending to Brahmbhatt’s telecom financing arms. Exposure grew to nearly $430 million, with BNP Paribas financing approximately half.
Loans were backed by accounts receivable—money supposedly owed by telecom clients. However, a July internal review uncovered irregularities in customer emails used to verify invoices. Investigators discovered all customer email addresses were fake, some mimicking legitimate companies like Belgium-based BICS, which denied any involvement.
Court filings state Brahmbhatt created “an elaborate balance sheet of assets that existed only on paper.” Lenders accused him of moving money and assets to offshore accounts in India and Mauritius.
After the discovery, Brahmbhatt stopped responding to lender calls. Investigators found his New York offices locked and deserted. The investigation revealed fake contracts dated back to 2018.
Aftermath and Impact
Following the revelations, related financing entities Carriox Capital II and BB Capital SPV filed for bankruptcy. BNP Paribas has set aside approximately €190 million ($220 million) to cover potential losses.
BlackRock told clients that while the financial impact is limited compared to its total assets, the case highlights serious risks in the private credit market, which relies heavily on trust and limited transparency.
