Who is Bankim Brahmbhatt? Indian-origin CEO under BlackRock’s radar for ‘breathtaking’ $500 million scam in US

An Indian-origin CEO is at the center of a $500 million fraud targeting the private credit investment arm of BlackRock, the world’s largest investment group, and other lenders, the Wall Street Journal reported Thursday.

BlackRock’s private credit investment arm, HPS Investment Partners, is now trying to get the money back after falling victim to what it calls a “breathtaking” scam, according to a WSJ report.

Bankim Brahmbhatt, owner of US-based companies Broadband Telecom and Bridgevoice, is accused of fabricating accounts receivable that were supposed to be used as loan collateral.

What is the case against Bankim Brahmbhatt?

The lawsuit, filed in August, alleges that HPS provided loans to Brahmbhatt’s companies on the condition that they put up as collateral millions of dollars owed by customers.

Lenders now claim Brahmbhatt’s companies owe them more than $500 million.

BlackRock also claimed that when the account receivables verification process began, it was found that funds from the loan had been diverted to offshore accounts in India and Mauritius.

BNP Paribas helped BlackRock’s HPS Investment Partners finance loans to Brahmbhatt companies, according to a WSJ report citing people familiar with the matter.

HPS, which was acquired by BlackRock earlier this year, began lending to at least one financing arm affiliated with Brahmbhatt’s telecom companies starting in September 2020.

Since the lawsuit was filed in August, several companies linked to Brahmbhatt, including New York-based invoice finance company Carriox Capital, have filed for Chapter 11 protection in the US.

Meanwhile, the lenders said in their lawsuit that Brahmbhatt used fake invoices, contracts and emails over the last two years to make it look like the money was owed to established telecom companies.

“Brahmbhatt created a detailed balance sheet of assets that existed only on paper,” lawyers for the lenders wrote.

Following its first loan in 2020, HPS increased its debt investment to approximately $385 million at the beginning of 2021 and then to approximately $430 million in August 2024.

Almost half of the loan to Brahmbhatt’s Carriox and its subsidiaries was financed by BNP Paribas, the WSJ reported.

Where is Bankim Brahmbhatt now?

According to the report, in July, an HPS employee noticed irregularities in certain email addresses purporting to be from Carriox customers.

This raised suspicions when HPS officials informed Bankim Brahmbhatt about the alleged irregularities. At the time, the businessman assured them there was no problem, but then stopped answering their calls.

When an HPS employee visited Brahmbhatt’s offices in Garden City, New York, in July, they appeared to be closed.

His office room appeared to be locked and empty Wednesday, and no one answered the bell at his listed home in Garden City. Two BMWs, a Porsche, a Tesla and an Audi were seen parked in the driveway, and a package was left unattended by the front door.

According to the report, HPS told some of its customers that they believed Brahmbhatt was in India.

Who is Bankim Brahmbhatt?

Bankim Brahmbhatt is the founder of Bankai Group and has been in the telecom industry for over thirty years.

His companies, Broadband Telecom and Bridgevoice, sell services and infrastructure to other telecom companies.

Bankim Brahmbhatt’s LinkedIn account appeared to have been deleted by the time Mint tried to access it.