BlackRock ’s private-credit arm and several major lenders are pursuing efforts to recover over $500 million lost in what they describe as a “breathtaking” loan fraud scheme involving fake invoices and fictitious customers, according to The Wall Street Journal (WSJ).
The lawsuit, filed in the United States in August 2025, accuses Bankim Brahmbhatt, an Indian-origin entrepreneur and owner of telecom-services firms Broadband Telecom and Bridgevoice, of orchestrating the alleged fraud. The lenders, including HPS Investment Partners (acquired by BlackRock earlier this year), claim Brahmbhatt fabricated invoices and accounts receivable used as collateral for hundreds of millions in loans.
The Alleged Scheme
According to the WSJ, Brahmbhatt’s network of companies created the illusion of strong financial health while allegedly diverting funds offshore to India and Mauritius. The lenders’ lawsuit states that Brahmbhatt’s entities now owe over $500 million.
BNP Paribas, one of Europe’s largest banks, reportedly financed nearly half of the total loans extended to Brahmbhatt’s firms. The French lender declined to comment on the matter.
HPS began lending to the telecom-linked companies in September 2020, increasing its exposure from $385 million in 2021 to about $430 million by August 2024. To verify the firms’ financials, HPS had engaged Deloitte for random customer checks and later CBIZ for annual audits—both of which have not commented publicly.
How Red Flags Emerged
In July 2025, an HPS employee discovered irregularities in customer email addresses used for invoice verification. Several domains mimicked real telecom firms, while some client communications were allegedly fabricated.
When confronted, Brahmbhatt reportedly dismissed the concerns and then stopped responding. A subsequent visit by HPS officials to the companies’ Garden City, New York office found it locked and deserted. Witnesses said the premises had been vacant for weeks.
At Brahmbhatt’s listed residence nearby, reporters found multiple luxury cars—including BMWs, a Porsche, a Tesla, and an Audi—parked outside, with unopened mail gathering at the door.
Investigation Findings
Following the discovery, HPS appointed Quinn Emanuel, a top US law firm, and CBIZ to conduct a detailed review. Their investigation allegedly confirmed that every customer email address provided by Brahmbhatt’s companies over the last two years was fraudulent, with some forged contracts dating as far back as 2018.
In one case, BICS, a Belgian telecom company, confirmed in writing that it had no relationship with Brahmbhatt’s firms and identified the emails as part of a deliberate fraud attempt.
The lenders’ legal complaint alleges that Brahmbhatt built an “elaborate balance sheet of fake assets” and secretly moved funds to offshore accounts in India and Mauritius.
Disclaimer: This article is based on reports from The Wall Street Journal and other publicly available sources. The allegations mentioned are part of ongoing legal proceedings, and the accused are presumed innocent until proven guilty.
