BlackRock Hit by $500 Million Scam, Indian-Origin CEO Vanishes
Indian-origin businessman Bankim Brahmbhatt is accused of orchestrating a “breathtaking” $500 million fraud scheme that targeted BlackRock’s private credit arm, HPS Investment Partners, and other major lenders.
Key Developments
- Bankim Brahmbhatt allegedly fabricated invoices and accounts receivable as loan collateral
- BlackRock’s HPS Investment Partners faces losses exceeding $500 million
- BNP Paribas reportedly financed nearly half of the loan exposure
- Brahmbhatt has vanished, with offices closed and luxury vehicles abandoned
The Elaborate Fraud Scheme
According to a Wall Street Journal report, Brahmbhatt created an extensive network of fake documents over two years to make it appear that major telecom companies owed money to his firms, Broadband Telecom and Bridgevoice. Court documents describe “an elaborate balance sheet of assets that existed only on paper.”
HPS began lending to Brahmbhatt’s companies in September 2020, with exposure growing to approximately $430 million by August 2024. The lawsuit filed in August claims loan proceeds were diverted to offshore accounts in India and Mauritius.
Discovery and Disappearance
The scheme unraveled in July when an HPS employee discovered irregularities in email addresses supposedly from Carriox clients. After initially denying wrongdoing, Brahmbhatt stopped responding to communications.
When HPS staff visited his Garden City, New York office, they found the premises closed and vacant. His nearby residence showed similar abandonment, with luxury vehicles including BMWs, Porsche, Tesla, and Audi parked in the driveway and unopened packages at the door.
HPS has informed clients they believe Brahmbhatt is now in India. Meanwhile, several Brahmbhatt-linked companies, including Carriox Capital, have filed for Chapter 11 bankruptcy protection.
Brahmbhatt, founder of Bankai Group, has over three decades of experience in the telecom industry through companies providing infrastructure and services to telecom operators.
