Indian-Origin Businessman Bankim Brahmbhatt Accused of $500 Million Fraud Linked to BlackRock

United States: Indian-origin businessman Bankim Brahmbhatt has been accused of a $500 million fraud in the US, in which many investors, including BlackRock, are suffering losses. Brahmbhatt is accused of taking loans through fake accounts and bills, although he has denied all the allegations.

What are the allegations?

According to the report, Brahmbhatt is accused of obtaining loans on the basis of fake bills and customer accounts of his companies. He had shown these fake bills as collateral for the loan. However, Brahmbhatt has denied these allegations.

Who is Bankim Brahmbhatt?

Bankim Brahmbhatt is the owner of two companies named Broadband Telecom and Bridgevoice, which together are part of the Bankai Group. This group describes itself as an international telecom service provider. According to Bankai Group's website, it provides infrastructure and connectivity services to telecom companies around the world.

Earlier Brahmbhatt had offices in Garden City, New York, America, but now these offices have reportedly been found closed. The office was locked and appeared empty when an investor representative visited in July, The Wall Street Journal reported.

How did the debt trap happen?

According to the report, Brahmbhatt raised a huge amount from investors through financial vehicles like Carriox Capital and BB Capital SPV. This included a company named HPS Investment Partners, which was recently purchased by BlackRock. It is alleged that Brahmbhatt made fake customer invoices and took loans by mortgaging them.

The lenders claim that the investigation revealed that every customer email and contract they provided over the past two years was fraudulent, some of which date back as far as 2018. The report quoted sources as saying that Brahmbhatt is currently in India. Several luxury cars—like BMW, Porsche, Tesla, and Audi—were found parked outside his US home, but the house was found locked.

Companies bankrupt, case in court

In August, Brahmbhatt's companies filed for bankruptcy. After them, Carriox Capital II and BB Capital SPV also took the same step. On August 12, Brahmbhatt himself also filed personal bankruptcy.

The lenders have claimed in court that Brahmbhatt prepared “a fake balance sheet on paper” in which the assets were created just for show. He also allegedly transferred these assets to accounts in India and Mauritius.

What did the lawyer say

Brahmbhatt's lawyer has said that all the allegations made against his client are false and baseless. He also added that the entire matter is still in the judicial process.