An Indian-origin financier has been arrested in the United States on charges of executing a 100 million dollar bank fraud and blackmailing scheme. Mahendra Makhijani, a 44-year-old businessman residing in Corona del Mar, California, was apprehended by authorities from his mansion in Newport Beach. If convicted of the charges, Makhijani faces a maximum prison sentence of up to 30 years.
Financed Scheme Manipulated Real Estate Loan System
According to the US Internal Revenue Service, Makhijani operated a Newport Beach-based firm named Cantor Group V LLC. An American bank had advanced 100 million dollars to the company to acquire or issue loans tied to real estate, with the agreement that the funds would be repaid to the financial institution through loan earnings. However, investigators state that Makhijani utilized a network of shell companies and heavily manipulated title insurance policy records. Between September 2024 and April 2025, he allegedly forged documentation to falsely demonstrate that his company held the primary right over the mortgaged properties. Makhijani then had his staff submit these fraudulent insurance policies to the bank while repeatedly misleading bank officials during teleconferences.
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Compulsion Tactics Included Targeted Blackmail and Physical Threat
Court documents reveal that Makhijani organized private parties involving narcotics and sex workers, which were attended by certain bank employees. Makhijani reportedly recorded or collected information regarding the events at these gatherings to blackmail both bank staff and his own employees to maintain dominance over them. Beyond financial manipulation, he relied on armed individuals and severe intimidation tactics. Court records cited in a New York Post report indicate that Makhijani regularly utilized threats, coercion, and violence to overpower his commercial rivals. Investigators note that he went so far as to send armed men to seize a luxury hotel and a restaurant located in an upscale area of Southern California.
Massive Financial Arbitration Penalties Preceded Arrest
The federal arrest follows a major legal setback for the financier. Just last month, an arbitrator held Makhijani liable for 1.3 billion dollars in damages following a real estate deal dispute with Laguna Beach businessman Mohammad Honarkar. IRS officials stated that Makhijani, who was born in India and resides in the US on a green card, manipulated financial systems and altered documents for personal gain, and will be held fully accountable under the law.
