US authorities have arrested an Indian-origin businessman in California over allegations that he orchestrated a complex fraud scheme that caused a federally insured bank to lose nearly $100 million.
Mahender Makhijani, 44, a Green Card holder residing in Corona del Mar, was taken into custody on federal charges related to alleged bank fraud involving falsified title insurance records and misleading collateral information.
According to federal prosecutors, Makhijani controlled Newport Beach-based Cantor Group V LLC, which maintained a lending arrangement with the bank. Under the agreement, the bank provided nearly $100 million to support the company’s real estate-backed lending activities.
Investigators allege that between September 2024 and April 2025, Makhijani altered title insurance documents to falsely indicate that his company held the primary lien position on certain real estate assets used as collateral.
Authorities claim the falsified records were submitted to the bank through an employee, while Makhijani personally participated in discussions with bank representatives and allegedly provided misleading information regarding concerns about the collateral documentation.
“As alleged, Makhijani falsified title insurance records, concealed true lien positions, and used a network of shell companies to mislead a federally insured bank out of nearly USD 100 million,” said Darren Lian, Acting Special Agent in Charge of IRS Criminal Investigation’s Los Angeles Field Office.
Federal investigators also allege that the scheme involved complex financial transactions, including layered fund transfers and disguised accounts, which were used to conceal the movement of money.
Bilal Essayli, First Assistant US Attorney for the Central District of California, said the arrest demonstrates continued efforts by authorities to safeguard the integrity of the US banking system and pursue financial crimes.
The case remains under investigation. If convicted, Makhijani faces a maximum sentence of up to 30 years in federal prison.
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