Mahender Makhijani Arrested in US: Indian-Origin Financier Held for Using S*x Parties and Shell Companies To Defraud Bank of USD 100 Million
Indian-origin financier Mahender Makhijani has been arrested in the US for allegedly defrauding a bank of nearly USD 100 million using falsified title insurance records and shell companies. Authorities also allege he hosted private s*x and drug parties involving bank employees and used blackmail and threats to control associates. He faces up to 30 years in prison if convicted.
An Indian-origin financier has been arrested in the United States for allegedly defrauding a bank of nearly USD 100 million (approximately INR 954.2 crore) through falsified financial records and a complex scheme involving shell companies. The accused, Mahender Makhijani (44) a Green Card holder, was taken into custody at his Newport Beach residence and now faces multiple federal charges.
US authorities allege that Makhijani used manipulated title insurance documents and corporate structures to mislead a federally insured bank. Prosecutors also claim the case involves coercion, intimidation, and the use of private drug and sex parties as part of a broader pattern of alleged criminal conduct. Dhaval Amratbhai Patel Case: Indian-Origin Man Living Illegally in US Assaults Man With Baseball Bat After Argument; Arrested.
Mahender Makhijani Arrested in US For Using S*x Parties for Fraud
Mahender Makhijani, 44, a lawful permanent resident from India living in Corona del Mar, was arrested this morning on a federal criminal complaint charging him with defrauding a bank out of nearly $100 million.
Makhijani controlled Cantor Group V LLC, a Newport Beach-based… pic.twitter.com/wEcSe5mQpW
— F.A. United States Attorney Bill Essayli (@USAttyEssayli) June 10, 2026
According to US officials, Makhijani was arrested on Wednesday morning, June 10, at his mansion in Corona del Mar, Newport Beach. “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. If convicted, he faces a maximum sentence of 30 years in prison.
Alleged USD 100 Million Fraud Scheme
The US Internal Revenue Service (IRS) alleges that Makhijani falsified title insurance records, concealed lien positions, and used shell companies to mislead a federally insured bank.
“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. Georgia Teacher Accused of S*x With Boy Arrested After Accurate Bedroom Sketch.
Court filings state that Makhijani controlled Cantor Group V LLC, which had a lending arrangement with the bank to originate or purchase real estate-backed loans.
Investigators allege that between September 2024 and April 2025, he falsified title insurance policies to falsely indicate that his company held first-lien positions on properties used as collateral. Authorities further claim he instructed employees to submit these falsified documents to the bank and misled bank representatives during teleconferences about identified discrepancies.
Court documents also allege that Makhijani hosted private gatherings involving drugs and s*x workers, some of which were attended by bank employees. Investigators claim he allegedly used information from these events to blackmail participants and maintain control over staff and associates.
The documents further allege that he threatened subordinates, saying he would “kill” them and put their “family on the street” and “their kids on welfare”. Authorities have not yet publicly confirmed charges related specifically to these allegations beyond their inclusion in the broader investigation.
In a separate development, court-related proceedings reportedly found Makhijani liable for more than USD 1.3 billion (approximately INR 12,391.6 crore) in damages in connection with real estate dealings involving businessman Mohammad Honarkar. According to reports, the case includes allegations of threats, intimidation, and violent coercion in business disputes.
Makhijani remains in custody and is awaiting further court proceedings. Federal investigators continue to examine financial records, property transactions, and communications as part of the ongoing case. Authorities say the investigation remains active and additional charges could be considered as evidence is reviewed.
(The above story first appeared on LatestLY on Jun 11, 2026 12:12 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).
