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Who is Mahender Makhijani? Indian-origin financier accused of conning bank out of $100 million, hosting sex parties
Armed federal agents arrested Indian-origin financier Mahender Makhijani during a raid at his California mansion, charging him with running a bank fraud scheme.
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Mahender Makhijani, a 44-year-old Indian-origin financier, is accused of defrauding Western Alliance Bancorp out of nearly $100 million. He allegedly falsified title insurance policies to inflate the value of the properties he pledged to obtain loans against. According to the New York Post, he is also accused of hosting sex parties and using them to put pressure on the attendees.
“Arrested from his mansion”
The first assistant US attorney for the Central District of California, Bill Essayli, confirmed that Makhijani was arrested on Wednesday. The accused was detained from his Newport Beach mansion by gun-toting federal agents.
“Mahender Makhijani, 44, a lawful permanent resident from India living in Corona del Mar [California], was arrested this morning on a federal criminal complaint charging him with defrauding a bank out of nearly $100 million,” Essayli tweeted.
What is Mahender Makhijani accused of?
“Makhijani controlled Cantor Group V LLC, a Newport Beach-based company that had a lending agreement requiring it to pledge only first-lien real estate loans to the victim bank. Makhijani falsified title policies from September 2024 to April 2025 to make it appear Cantor held first-lien positions when other creditors were ahead. Makhijani and a subordinate forged documents in Adobe, altered metadata, and submitted the falsified records to the victim bank, while also providing misleading explanations during calls and in spreadsheets,” shared Essayli.
The government official added that if convicted of the charges, “Makhijani faces a statutory maximum sentence of 30 years in federal prison.”
He is expected to make his initial appearance in the US District Court in Santa Ana, California.
“Our nation’s economy and welfare depend on a healthy banking system. When lenders are deceived, it has downstream effects on consumers and businesses,” Essayli added as a concluding part of his tweet.
He also shared, “All defendants are presumed innocent until convicted in court.”
“Accused of threats and intimidation”
According to court documents and witness statements, Makhijani allegedly used ruthless threats and intimidation, often violent, to gain an upper hand on business rivals. It is also alleged that he is liable for more than $1.3 billion in damages involving his real estate dealings with businessman Mohammad Honarkar.
“He’s going to destroy my reputation in Laguna. He’s going to make sure my kids and my grandkids are on the street. He’s going to make my life miserable,” the associate, identified as Honarkar, told media outlets. “That’s what he said.”
