Key Points
- Bankim Brahmbhatt is accused of faking telecom receivables. Lenders say the deals hid offshore fund transfers.
- BlackRock’s credit arm advanced hundreds of millions after 2020. BNP Paribas also joined the financing round later.
- Investigators later found fake customer emails and contracts. The CEO denies wrongdoing as bankruptcy runs on.
BlackRock has reportedly lost over $500 million to Indian-origin executive Bankim Brahmbhatt. He ran US telecom-linked firms that now face fraud claims.
Court papers in the United States say his companies built fake receivables. They then used them as loan collateral for global lenders. A similar pattern drove the fresh $556k fraud case Nigeria saw in October.
How the loans grew
The alleged scheme started in 2020 when BlackRock’s credit arm, HPS, first lent to one Brahmbhatt vehicle. Loan exposure rose over four years as the books appeared strong. Lenders say receivables were the main comfort.
By 2024, the facility had ballooned to about $430 million. French bank BNP Paribas also joined the financing stack. Both now face heavy write-downs.
What lenders found
The trouble surfaced in July when staff spotted spoofed customer emails. The addresses copied real telecom clients but came from fake domains. That discovery triggered wider checks.
Investigators then said many contracts shown since 2018 were fabricated. They also traced loan-backed assets to offshore accounts in India and Mauritius. Lenders said the business “existed only on paper.”
Brahmbhatt first dismissed the alerts, according to filings. Soon after, he stopped taking calls from lenders. Offices tied to the firms were later found locked.
In August, his telecom companies filed for Chapter 11 protection. He also entered personal bankruptcy because he had guaranteed the loans. Creditors now believe he is in India.
Global lenders have lately faced several high-value fraud disputes. ValidUpdates recently covered a US tech-style fraud that drew long jail time in September in the JPMorgan fraud sentence.
Brahmbhatt has denied wrongdoing through his lawyers. He is expected to contest the civil claims. Criminal action was not stated in the filings seen
