BlackRock’s $500 Million Loan Fraud: Inside the Alleged Scam by Indian-Origin CEO Bankim Brahmbhatt
In what is being described as one of the most elaborate loan frauds in recent years, global investment giant BlackRock has reportedly lost over $500 million through its private-credit arm in a scheme allegedly masterminded by Bankim Brahmbhatt, an Indian-origin CEO of telecom firms Broadband Telecom and Bridgevoice. The allegations, detailed in a Wall Street Journal investigation, reveal a sprawling web of fabricated invoices, falsified customer accounts, and offshore fund transfers that left several major lenders blindsided.
The Alleged Scheme: Fake Invoices and Phantom Clients
According to court filings in the United States, Brahmbhatt’s companies created a façade of financial stability through invented invoices and fictitious accounts receivable that were used as collateral for multi-million-dollar loans. These paper assets painted an illusion of thriving business operations, enabling the companies to secure increasing sums from lenders like BlackRock’s HPS Investment Partners. The lawsuit, filed in August 2025, alleges that funds were quietly routed offshore to India and Mauritius, leaving behind hollow books and unpaid debts amounting to half a billion dollars.
Timeline of the Loan Expansion
HPS Investment Partners began lending to Brahmbhatt-linked firms in September 2020, initially investing $385 million, and later expanding the credit line to nearly $430 million by August 2024. French banking major BNP Paribas, one of Europe’s largest lenders, co-financed almost half of the total amount through Carriox Capital and its affiliated entities. BNP Paribas has so far declined public comment on its involvement in the financing.
Red Flags Emerge: The Discovery of Email Fraud
The first signs of trouble appeared in July 2025, when an HPS employee noticed irregularities in email domains used to verify invoices. The addresses, upon inspection, were linked to fake websites mimicking legitimate telecom companies. Subsequent checks revealed that many of the supposed client communications were completely fabricated. When approached, Brahmbhatt dismissed the concerns and soon became unresponsive to calls and emails.
A team from HPS later visited the company’s registered office in Garden City, New York, only to find it locked and deserted. Witnesses confirmed that no employees had been seen for weeks, while several luxury vehicles—including BMWs, a Porsche, and a Tesla—were found parked at Brahmbhatt’s residence, suggesting a sudden disappearance amid financial chaos.
Investigation and Legal Fallout
Following the revelations, BlackRock and other affected lenders hired Quinn Emanuel, a leading U.S. law firm, along with accounting firm CBIZ, to conduct a forensic review. Their investigation revealed a complete fabrication of client communications over two years. Every customer email submitted for invoice verification was fraudulent, and several contracts allegedly dated as far back as 2018 were forged.
One example involved BICS, a Belgian telecom company. In July, BICS’s security department confirmed in writing that it had no affiliation with the emails or transactions presented by Brahmbhatt’s companies—labeling them an unequivocal fraud attempt.
Impact on BlackRock and the Global Lending Ecosystem
The alleged fraud comes at a critical time for BlackRock, which had only recently expanded its footprint in the private-credit market through the acquisition of HPS Investment Partners. The incident underscores the growing risks in private lending, where rapid expansion and reliance on third-party audits may leave room for manipulation. While BlackRock is now pursuing recovery through litigation, the scandal has raised concerns about due diligence and accountability in the high-yield credit space.
Financial Forensics Point to Offshore Transfers
Court filings indicate that Brahmbhatt’s network of companies had systematically transferred funds offshore, particularly to India and Mauritius, to obscure the paper trail. Authorities are now tracing these movements in collaboration with international financial regulators, as the case could evolve into one of the largest private-lending frauds in recent U.S. history.
Industry Response and Lessons for Investors
The scandal has sent ripples across the global investment community, prompting renewed scrutiny of invoice-based lending models. Experts argue that the case could drive a shift toward real-time verification systems and enhanced transparency in private credit markets. As regulators tighten their watch, investors are likely to demand more stringent audits before approving billion-dollar credit lines to mid-sized corporate borrowers.
