New York, November 1, 2025 — A U.S.-based entrepreneur of Indian origin has been accused of masterminding a massive $500 million loan fraud, in what has been described as one of the most staggering financial deceptions to hit the American private credit market in recent years, according to a Wall Street Journal report.
The alleged perpetrator, Bankim Brahmbhatt, founder of Broadband Telecom and Bridgevoice, is accused of falsifying accounts receivable (AR) records that were used as collateral to secure multimillion-dollar loans from American lenders. Brahmbhatt allegedly created fake customer accounts and fabricated financial data to obtain credit worth hundreds of millions of dollars.
Lenders Seek to Recover $500 Million
Private credit firm HPS Investment Partners, a division of BlackRock, and several other U.S. lenders have filed a lawsuit seeking to recover approximately $500 million linked to Brahmbhatt’s ventures. The lenders claim they were defrauded through an elaborate scheme of falsified documentation and misrepresented revenues.
According to the complaint, Brahmbhatt’s companies claimed to provide telecom infrastructure and related services to global operators. However, investigations revealed that many of the customer accounts pledged as collateral were either non-existent or artificially inflated.
BlackRock Caught in the Crossfire
The case comes at a crucial time for BlackRock, which had acquired HPS Investment Partners earlier this year as part of its strategic expansion into private credit markets. The scandal has raised concerns among investors about due diligence practices in the fast-growing sector.
Sources told WSJ that when HPS initially questioned the discrepancies, Brahmbhatt downplayed the matter, insisting that there was “nothing to worry about.” Soon after, he reportedly stopped responding to calls altogether.
An HPS employee who later visited the Garden City, New York headquarters of Brahmbhatt’s firms found the offices locked and deserted. Nearby tenants confirmed that the premises had been vacated for several weeks, with no sign of staff activity.
Bankruptcy Filing and Fallout
On August 12, Brahmbhatt filed for personal bankruptcy, the same day his telecom firms filed for Chapter 11 protection, which under U.S. law allows companies to reorganize while shielding themselves from creditors.
According to court filings, the bankruptcy applications list assets far below the claimed debt obligations, prompting suspicions that large sums may have been diverted or concealed.
Profile of the Accused
Brahmbhatt, a veteran of more than 30 years in the telecom sector, is the founder of Bankai Group, a global telecom and fintech conglomerate. His group companies, Broadband Telecom and Bridgevoice, had claimed to provide wholesale voice, messaging, and payment solutions to telecom operators worldwide.
Following revelations of the alleged fraud, Brahmbhatt’s LinkedIn profile was deleted, and his corporate websites have gone largely inactive. U.S. investigators are reportedly coordinating with financial regulators to trace the flow of funds and identify potential overseas assets linked to the case.
As proceedings unfold in U.S. bankruptcy courts, the $500 million loan scandal is being closely watched by the global finance community — not only for its scale but also for its implications on the credibility and risk management of the burgeoning private credit market.
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