$100 Million Fraud, Sex Parties: Indian-Origin Man Arrested in US

New Delhi, June 11: An Indian-origin financier in California is facing serious allegations after US authorities accused him of orchestrating a nearly $100 million bank fraud scheme while living a lavish lifestyle marked by luxury and intimidation. According to some US media reports, the US authorities have alleged that the financier arranged parties with sex workers only to blackmail the attendees later.

According to prosecutors, 44-year-old Mahender Makhijani was arrested on Wednesday after armed federal agents raided his mansion in Corona del Mar, an affluent coastal community in Newport Beach, California. He has been charged with bank fraud and could face up to 30 years in prison if convicted.

Federal investigators allege that Makhijani defrauded a local bank of nearly $100 million by submitting forged real estate documents and inflating the value of properties used as loan collateral. Authorities say he carried out the scheme through Newport Beach-based Cantor Group V LLC and a network of affiliated companies.

Court documents claim that between September 2024 and April 2025, Makhijani and a subordinate manipulated title insurance records using Adobe software. They allegedly altered metadata, created forged documents and submitted them to the bank to secure financing.

Prosecutors further allege that Makhijani misled bank officials through phone calls, emails and spreadsheets to conceal the fraud. Authorities have not yet recovered the missing funds.

However, the allegations extend far beyond financial misconduct. According to court filings and witness statements cited by the New York Post, Makhijani hosted private parties involving drugs and sex workers. Some bank employees and business associates allegedly attended these gatherings. Prosecutors claim he later used information from the events to blackmail participants and maintain control over employees and associates.

Witnesses told investigators that Makhijani regularly used threats and intimidation to enforce loyalty. He allegedly warned subordinates that he would "kill" them and leave their "family on the street" with "their kids on welfare" if they failed to comply with his demands. Authorities also accuse him of blackmailing employees after the parties.

Investigators say Makhijani ran his business empire through fear and coercion. Court documents allege that he instructed associates to target business rivals, break into properties and pressure competitors. In one instance, he allegedly posted eviction notices at the homes of a rival's relatives. In another, he reportedly rented a billboard accusing a business opponent of robbery.

Prosecutors also cited video evidence that allegedly shows Makhijani wearing designer clothing while directing associates involved in confrontations with security guards. The incidents reportedly included smashing windows, seizing documents and carrying out acts of intimidation against opponents.

Federal agents arrested Makhijani during a dawn raid at his home on Wednesday morning. Witnesses saw officers lead him away in handcuffs after he briefly appeared outside wearing pyjamas.

Authorities say Makhijani enjoyed an extravagant lifestyle funded by his business ventures. He allegedly travelled on private jets, wore expensive designer clothing and owned a collection of luxury vehicles, including a Bentley, Porsche and Mercedes G-Wagon. Investigators also found that he owned two neighbouring mansions, with one reportedly reserved for his in-laws.

Despite the scale of the investigation, much of Makhijani's wealth remains unaccounted for. Prosecutors noted in court filings that he possesses substantial financial resources, but investigators have not yet traced where many of those assets are held. They believe some of the funds may be concealed under other names or through complex financial arrangements.

The case also intersects with a long-running legal dispute involving the historic Hotel Laguna in Southern California. The conflict reportedly escalated into violent confrontations in 2023, forcing temporary closures at the property. In May this year, arbitrators awarded

approximately $1.34 billion to businessman Mohammad Honarkar after concluding that

Makhijani had breached agreements and committed fraud.

Adding to concerns about flight risk, court documents reveal that Makhijani previously told associates he would flee to India if authorities ever caught up with him. Prosecutors are using those statements to argue that he should remain in custody while the case proceeds.

The investigation remains ongoing, and authorities continue to search for the missing funds as they build their case against the California financier.