BlackRock falls prey to ‘breathtaking fraud’- Indian-origin CEO accused of fabricating accounts for loans worth $500M: Report

BlackRock private-credit investing arm and other American lenders have been hit by what they describe as “breathtaking” fraud, as they try to recover funds worth millions of dollars, according to a Wall Street Journal report.

Bankim Brahmbhatt, owner of US based Broadband Telecom and Bridgevoice, has been accused of fabricating accounts receivables (AR) that were meant to be used as loan collateral, according to WSJ.

BlackRock and other lenders have filed a lawsuit insisting that ventures led by Brahmbhatt, who is the owner of the telecom-services companies Broadband Telecom and Bridgevoice, owe them over $500 million in connection with the allegations they’ve launched against them. As per the websites of the accused’s businesses, they sell services and infrastructure to other telecom companies.

While WSJ noted that the concerned parties filed a lawsuit against the Indian-origin Bankai Group president and CEO in August, Brahmbhatt’s lawyer has dismissed these allegations.

“Brahmbhatt created an elaborate balance sheet of assets that existed only on paper,” lawyers representing the lenders wrote. They even accused Brahmbhatt of transferring assets–originally meant to be pledged as collateral–to offshore accounts in India and Mauritius.

Brahmbhatt loans fraud allegations: Sources, lawsuit reports

People privy to the matter shared with the American news outlet that the leading bank BNP Paribas backed BlackRock’s HPS Investment Partners’ decision to finance loans for Brahmbhatt’s telecom companies. Moreover, it was reported that the now-BlackRock-owned credit giant HPS started lending to at least one financing arm linked with Brahmbhatt’s ventures in September 2020.

In early 2021, it expanded the debt investment size to around $385 million, followed by another expansion to about $430 million in August 2024. The further dissection of the reported investments suggested that BNP Paribas funded nearly 50% of the loan to Brahmbhatt’s Carriox and other affiliated branches. Sources cited HPS’ interactions with clients underlining that the loans were held in two credit funds.

The August lawsuit at the centre of the controversial development reportedly came after an HPS employee came across irregularities with some email addresses that were believed to be linked to Carriox customers. Ultimately, the official filing, as detailed by the WSJ, indicated that lenders called out emails originating from fake domains that appeared to be impersonating real telecom companies. A similar pattern emerged in a review of past emails.

At first, Brahmbhatt reportedly responded to HPS’ alarming calls by saying that there was no reason to be concerned about anything. Shortly after that, he simply stopped answering phone calls.

Where is Bankim Brahmbhatt now?

Brahmbhatt is said to have filed for bankruptcy on August 12, the same day his telecom companies filed for chapter 11. According to the official US Courts website, “Chapter 11 of the Bankruptcy Code generally provides for reorganisation, usually involving a corporation or partnership. A Chapter 11 debtor usually proposes a plan of reorganisation to keep its business alive and pay creditors over time. People in business or individuals also can seek relief in Chapter 11.

As for his whereabouts, WSJ wrote that his office suite in Garden City, New York, was locked and seemed vacant on Wednesday morning. An employee linked to an adjacent tenant said that she hadn’t witnessed any movement around the offices recently. Even a doorbell at a house listed as the Indian-origin man’s residence in Garden City went unanswered.

HPS has since voiced its concerns about the Bankai Group chair possibly having left for India, WSJ cited people familiar with the issue.

With the WSJ exclusive hitting the Internet on October 30, 2025, 10:32 am ET, Bankim Brahmbhatt’s social media account vanished hours later. At the time of writing, a basic Google search of the telecom professional’s name shows that he is based in Garden City, New York.

However, as soon as one clicks on his LinkedIn account search result (https://www.linkedin.com/in/bankimbb/), the page pushed a ‘404’ error prompt. Similarly, his X account (@BankimBB) is no longer accessible despite Google indicating its prior visibility.

(Disclaimer: Financial Express has not independently reviewed the lawsuit copy. All claims have been sourced from an exclusive Wall Street Journal report.)