Indian-origin businessman arrested over $100 million bank fraud scheme in California; threatened to ‘kill’ employees if they disobeyed

Federal authorities have arrested Indian-origin businessman Mahender Makhijani, accusing him of defrauding a bank out of nearly $100 million through a scheme that involved forged real estate documents and misleading financial records.The 44-year-old man is a lawful permanent resident from India who lives in Corona del Mar, California. He was taken into custody on Wednesday and charged with bank fraud. He faces up to 30 years in prison if convicted, reports the New YoirAccording to court documents, Makhijani ran Newport Beach-based Cantor Group V LLC, which had an agreement with a bank to use only top-priority real estate loans as collateral. Between September 2024 and April 2025, he altered title insurance documents to make it look like the company had first claim on certain properties, even though other lenders actually had priority rights over them.Makhijani and a subordinate altered documents using Adobe software, changed metadata and submitted the forged records to the bank. Moreover, misleading explanations were provided during calls and through spreadsheets sent to the lender.Federal agents arrested Makhijani at his home in the coastal community of Corona del Mar in Newport Beach. Investigators have yet to recover the missing funds.The complaint paints a picture of a businessman who controlled substantial wealth and a network of companies. Makhijani travelled by private jet, owned neighbouring mansions and maintained a collection of luxury vehicles, including a Bentley, Porsche and Mercedes G-Wagon.His financial resources still remain difficult to trace.“Makhijani has significant financial resources, but the government has not fully traced and accounted for those resources, which are almost certainly not held in Makhijani’s name,” the complaint states.Cantor Group V was only one of several entities under Makhijani’s control. The complaint alleges he personally manipulated title records on a laptop by editing metadata or printing, altering and rescanning documents before submitting them to lenders.

Mahendar threatened to ‘kill’ employees

The court filing also contains about Makhijani’s misconduct. He threatened associates, boasted about fleeing to India if authorities caught up with him and used intimidation to maintain control over subordinates. Witnesses told investigators that he threatened to “kill” employees and put their “family on the street” and “their kids on welfare.”He hosted parties involving drugs and sex workers and later used what attendees’ did at those parties as a leverage against them.The complaint further links Makhijani to a number of business disputes. He directed associates to confront rivals, target their businesses and pressure opponents. One dispute centred on the management of Hotel Laguna in 2023, where security personnel connected to Makhijani clashed with workers at the property.Separately, an arbitrator awarded about $1.34 billion in May to Laguna Beach businessman Mohammad Honarkar in a civil dispute involving dozens of properties. The ruling found that Makhijani had breached agreements and defrauded Honarkar.“Criminals like this, they have multiple companies, multiple places,” Honarkar told The Pilot. “They hide, and [Makhijani] doesn’t give you any paper.”Makhijani is expected to make his initial appearance in federal court in Santa Ana.Announcing the arrest, First Assistant US Attorney Bill Essayli said: