A shocking case of financial fraud has come to light involving an Indian-origin CEO accused of carrying out a $500 million(₹4,439 crore) scam in the US and now facing a lawsuit. Several lenders, including BlackRock-backed HPS Investment Partners, have accused Indian-origin telecom executive Bankim Brahmbhatt of this massive fraud. According to The Wall Street Journal, he executed the scheme by generating money through fake invoices and bankrupt firms.
How Bankim Brahmbhatt orchestrated the Fraud?
Bankim Brahmbhatt, the owner of telecom-services firms Broadband Telecom and Bridgevoice fabricating invoices and accounts receivable that were pledged as collateral for massive loans. The suit, filed in August in the United States, alleges that Brahmbhatt’s network of companies built an illusion of financial health on paper while moving money offshore to India and Mauritius. Every customer email provided by Brahmbhatt’s firms to verify invoices over the past two years was fraudulent, and that some contracts dating back to 2018 were forged.
What the Scam is?
According to the lawsuit, Bankim Brahmbhatt’s companies owe over $500 million. The Wall Street Journal reported that BNP Paribas helped finance loans from HPS to his firms but has not commented on the case. The fraud surfaces at a crucial time for BlackRock, which recently acquired HPS Investment Partners. HPS began lending to Brahmbhatt’s firms in 2020, increasing the total investment from $385 million in 2021 to about $430 million by 2024.
How did the fraud unravel?
According to the Wall Street Journal, problems began in July 2025 when an HPS employee found something unusual in customer email addresses used to check invoices. Some of these emails came from fake websites that looked like real telecom companies. Later, investigators found that some messages that seemed to be from clients were actually fake.
Who is Bankim Brahmbhatt?
Bankim Brahmbhatt is an Indian-origin telecom entrepreneur and the founder, President, and CEO of the Bankai Group. The group includes companies like Broadband Telecom and Bridgevoice. He has worked in the telecommunications field for more than 30 years. His companies provide network and connectivity services to telecom operators around the world. In 2023, he was included in Capacity’s Power 100 List for his contributions to the industry.
