New Delhi: An Indian-origin financier based in California has been arrested by US federal authorities for allegedly orchestrating a bank fraud scheme that investigators say caused nearly $100 million in losses to a financial institution. The accused, Mahender Makhijani, was taken into custody during a raid at his residence in California.
According to federal prosecutors, Makhijani, 44, controlled a lending company and between September 2024 and April 2025, he submitted falsified title insurance documents and other forged records to make it appear that the company held first-priority claims on property loans pledged as collateral to bank. Prosecutors claim the altered documents helped secure financing that would not otherwise have been approved.
Investigators allege that Makhijani and an associate manipulated documents using technology, altered metadata, and provided misleading explanations to the bank. The alleged scheme, as per reports, targeted Western Alliance Bancorp and resulted in losses worth about $100 million.
The case has drawn additional attention because of allegations contained in court filings and witness statements. Reports claim Makhijani hosted lavish parties involving sex workers and later used information from those gatherings to exert pressure on attendees. Authorities are also examining allegations of intimidation linked to his business dealings.
Witnesses and court documents cited in media reports further allege that Makhijani used threats and coercive tactics against business partners and employees. One report stated that federal investigators are looking into claims that he threatened employees who failed to follow his orders.
Makhijani faces serious federal charges. If convicted, he could face a maximum sentence of up to 30 years. Authorities have emphasized that all defendants are presumed innocent until proven guilty by law.
Makhijani is expected to make his initial appearance before a federal court in Santa Ana, California, as the investigation continues.
