Indian-origin businessman Mahender Makhijani arrested in US for alleged $100 million bank fraud
PTC Web Desk: An Indian-origin businessman from California has been arrested in connection with an alleged scheme to defraud a bank of nearly $100 million by submitting forged documents and misrepresenting loan collateral, according to US federal authorities. Mahender Makhijani, 44, who lives in Corona del Mar, was taken into custody on Wednesday after being charged with bank fraud in a criminal complaint filed by federal prosecutors, the US Department of Justice said.
Investigators allege that Makhijani, who controlled Newport Beach-based lending firm Cantor Group, provided falsified records to secure and maintain financing from a federally insured bank identified in court documents as “Bank #1.”
Mahender Makhijani, 44, a lawful permanent resident from India living in Corona del Mar, was arrested this morning on a federal criminal complaint charging him with defrauding a bank out of nearly $100 million.
Makhijani controlled Cantor Group V LLC, a Newport Beach-based… pic.twitter.com/wEcSe5mQpW
— F.A. United States Attorney Bill Essayli (@USAttyEssayli) June 10, 2026
According to prosecutors, the bank had extended close to $100 million to Cantor Group for originating and purchasing real-estate-backed loans. Under the lending agreement, the company was required to pledge those loans and the associated properties as collateral. The arrangement specifically required the pledged loans to be backed by first liens, which give lenders priority rights over a property if a borrower defaults.
Federal authorities claim that between September 2024 and April 2025, Makhijani altered title insurance documents to falsely indicate that Cantor Group held first-lien positions on certain properties, even though other lenders allegedly had superior claims.
The complaint further alleges that Makhijani, either personally or through an associate, used Adobe software to modify documents. Investigators claim the altered files were stripped of metadata and then printed and rescanned before being submitted to the bank in an effort to conceal the changes.
Prosecutors also allege that Makhijani misled bank representatives during conference calls and was responsible for providing a spreadsheet containing inaccurate information regarding title issues and loan collateral in December 2024.
The alleged fraud came under further scrutiny after the bank filed a lawsuit in Los Angeles Superior Court in August 2025. Authorities say the investigation remains ongoing.
If convicted, Makhijani could face substantial federal penalties under US law.
- With inputs from agencies
