Indian-origin businessman Mahender Makhijani was arrested by US federal authorities over allegations that he orchestrated a nearly USD 100 million bank fraud scheme. Prosecutors claim he submitted falsified documents to misrepresent loan collateral and mislead a lender. Makhijani appeared in federal court following his arrest and faces up to 30 years in prison if convicted.
Indian-origin businessman Mahender Makhijani, 44, was arrested by federal authorities in the United States for allegedly orchestrating a nearly USD 100 million bank fraud scheme. The arrest took place on Wednesday morning at his luxury residence in Corona del Mar, an upscale neighbourhood in Newport Beach, California. A video of his arrest has gone viral.
According to a New York Post report quoting the US Attorney’s Office for the Central District of California, Makhijani controlled Newport Beach-based Cantor Group V LLC, which had a lending agreement requiring it to pledge only first-lien real estate loans as collateral to a victim bank. Investigators allege that between September 2024 and April 2025, Makhijani falsified title insurance policies to falsely portray that Cantor held first-priority claims on certain real estate loans when, in reality, other creditors had superior positions.
Federal prosecutors claim Makhijani and an associate altered documents using Adobe software, manipulated metadata and submitted forged records to the bank. Authorities further allege that misleading explanations were provided through spreadsheets, phone calls and other communications to conceal the fraud.
The case comes amid wider scrutiny of Makhijani’s business dealings. Just last month, an arbitrator reportedly ordered him to pay more than USD 1.3 billion in damages in a civil dispute involving Laguna Beach businessman Mohammad Honarkar. Court filings in that matter accused Makhijani of engaging in intimidation tactics, including allegedly deploying armed individuals to take control of hotels, vacation rental properties and a restaurant linked to Honarkar during a bitter business conflict.
Legal documents also allege that mobile billboards targeting business rivals and local public figures were used as part of a campaign aimed at damaging reputations. Honarkar claimed Makhijani threatened to ruin him financially and personally amid the escalating dispute.
Mahender Makhijani, 44, a lawful permanent resident from India living in Corona del Mar, was arrested this morning on a federal criminal complaint charging him with defrauding a bank out of nearly $100 million.
Makhijani controlled Cantor Group V LLC, a Newport Beach-based… pic.twitter.com/wEcSe5mQpW
— F.A. United States Attorney Bill Essayli (@USAttyEssayli) June 10, 2026
