PIO financier arrested in alleged $100 million US bank fraud case

Indian-origin financier Mahender Makhijani has been arrested in Califor­nia for allegedly defraud­ing a local bank of nearly $100 million (about `956.9 crore) through a scheme involving manipulated title insurance documents and inflated collateral values.

According to US prosecutors, Makhijani allegedly falsified title insurance records, concealed true lien positions and used shell companies to mislead a federally insured bank. Investigators claim he altered real estate title documents and created policies falsely showing his firm, Cantor Group V, as holding first-lien positions on properties, thereby overstating the value of collateral securing loans.

Prosecutors said Western Alliance Bank extended nearly $100 million in financing to Cantor in 2024. Had the lender known about the alleged misrepresentations, it would have declared the company in default and demanded immediate repayment, according to the criminal complaint. Federal agents arrested Makhijani from his Orange County residence on Thursday. He has been charged with bank fraud, which carries a maximum sentence of 30 years in prison.

Makhijani, 44, controls Newport Beach-based Cantor Group V and is a US permanent resident. He lives in the upscale Corona del Mar neighbourhood of Newport Beach and is known for owning several luxury vehicles, including a Bentley, Porsche and Mercedes G-Wagon.

Court documents in separate civil proceedings also contain allegations Makhijani used intimidation and strong-arm tactics against business rivals. Last month, an arbitrator awarded Laguna Beach businessman Mohammad Honarkar over $1.3 billion in damages after finding Makhijani had fraudulently induced him in business dealings. He has denied fraud allegations in civil cases.