Indian-Origin Tycoon Mahender Makhijani Arrested at California Mansion in Alleged $100 Million Bank Fraud Case

MAHENDER MAKHIJANI, a 44 year–old Indian-origin businessman, was arrested by the federal authorities in the United States for allegedly orchestrating around USD 100 million bank fraud scheme on June 10, 2026, Wednesday. Prosecutors claim that he submitted false and misleading information to misrepresent loan collateral and mislead a lender. According to the US Department of Justice, he was arrested on a criminal complaint charging him with bank fraud. He faces up to a maximum of 30 years in prison if convicted. 

According to a report published by New York Post, said the US Attorney’s Office for the Central District of California, Mahender Makhijani controlled Newport Beach-based Cantor Group VLLC, which had a lending relationship with a federally insured bank identified in the complaint as "Bank #1" 

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Makhijani Arrested From His Luxury Mansion

Mahender Makhijani was arrested from his luxury residence in Corona del Mar, an upscale neighbourhood in Newport Beach, California. His video of getting arrested is getting viral on social media. The bank advanced nearly 100 million USD to Cantor Group to acquire real-estate-secured loans, under the given agreement. The Cantor was required to pledge the provided loans and their underlying collateral to the bank in the return.

The Federal Prosecutors claimed that between September 2024 and April 2025, Mahender Makhijani and an associate manipulated insurance policies as well as the status of the real-estate-backed loans pledged as collateral to a victim bank, exposing the lender to losses. The authorities further allege that to conceal the fraud, misleading explanations were provided through spreadsheets and phone calls.

Makhijani and his subordinate altered the required documents with the help of the Adobe software, changed metadata and submitted altered records to the bank authorities. Moreover, misleading details have been sent to the bank via phone calls and spreadsheets. Now, Makhijani has been arrested, investors are trying to recover missing funds. 

US Attorney Bill Essayli’s Statement

The First Assistant US Attorney Bill Essayli said in a statement that the banking system runs on transparency and honesty, warning that fraud against lenders can result in serious consequences for consumers and businesses alike. If convicted, Mahender Makhijani is all set to face at least 30 years in federal prison. He appeared before a federal court in Santa Ana, following his arrest by the authorities. 

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The complaint against Makhijani alleges that he participated in the conference calls with the representatives of the bank and provided confusing information when questions were asked about title discrepancies.

In December 2024, he maintained a spreadsheet containing misleading information and false explanations regarding the title issues. The bank filed a lawsuit in the  Los Angeles Superior Court in connection with the fraud.

Who is Mahender Makhijani?

Mahender Makhijani controls a Newport Beach-based company which received around $100 million from a bank identified in court documents as "Bank #1." The financing was intent to help Cantor in purchasing loans backed by real estate. Mahender Makhijani  faces up to a maximum of 30 years in prison if convicted.

According to the New York Post report, Mahender is also accused of hosting several sex parties and using them to pressurize the employees. According to court documents and witness statements, he allegedly used ruthless threats and intimidation to keep an upper hand in the business rivalries.

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