California Businessman Arrested In $100 Million Bank Fraud Scheme

India-West News Desk

NEWPORT BEACH, CA — Federal agents in California have taken Mahender Makhijani, a 44-year-old businessman and lawful permanent resident from India, into custody over allegations that he masterminded a $100 million bank fraud scheme. Arrested on June 10 at his home in Newport Beach’s Corona del Mar community, Makhijani faces a federal charge of bank fraud, which carries a potential 30-year prison sentence.

The criminal complaint outlines a deception involving Cantor Group V LLC, a firm under Makhijani’s control. Under the terms of his lending agreements, the company was required to pledge only top-priority, or first-lien, real estate loans as collateral. Investigators allege that between September 2024 and April 2025, Makhijani and a subordinate manipulated these agreements by forging title insurance documents. Using Adobe software to edit metadata and records, they falsely presented the firm as holding primary claims on properties where other lenders actually held priority. These fraudulent documents were submitted to the bank alongside misleading financial spreadsheets and deceptive explanations.

First Assistant U.S. Attorney Bill Essayli, in announcing the arrest, highlighted the importance of banking integrity, noting that the national economy and public welfare rely on a healthy system; when lenders are misled, it triggers detrimental consequences for other businesses and consumers.

Beyond these financial crimes, the court filing details a pattern of severe intimidation. Witnesses reported that Makhijani used threats to exert control over subordinates, claiming he would “kill” employees and warn them that he would put their “family on the street” and their “kids on welfare.” The complaint further alleges he hosted parties involving illicit drugs and sex workers, subsequently using those activities to blackmail attendees into compliance.

Makhijani’s broader business history has also faced legal challenges. In May 2026, an arbitrator awarded $1.34 billion to Laguna Beach businessman Mohammad Honarkar following a civil dispute where it was determined that Makhijani had committed fraud and breached agreements. Additionally, the complaint links Makhijani to a 2023 property dispute at Hotel Laguna involving a confrontation between security personnel tied to him and the hotel’s workers.

Despite living a life defined by private jet travel and a collection of luxury vehicles—including a Bentley, Porsche, and Mercedes G-Wagon—the government reports that his assets are elusive. The complaint notes that although he possesses significant wealth, investigators have struggled to trace his resources, which are likely held under other names. Makhijani has also previously boasted about his plans to flee to India should authorities investigate him. He is slated to appear in federal court in Santa Ana, where he is currently presumed innocent.

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