BlackRock and Lenders Seek Recovery After Alleged $500 Million Fraud by Bankim Brahmbhatt

Background on Bankim Brahmbhatt

Brahmbhatt is the owner and CEO of Broadband Telecom and Bridgevoice, two relatively unknown companies under the umbrella of the Bankai Group, which describes itself as a global telecom infrastructure provider. His businesses reportedly offered connectivity and support services to telecom operators worldwide. Until recently, Brahmbhatt maintained offices in Garden City, New York.

Alleged Fraud Details

According to lenders, Brahmbhatt allegedly fabricated customer invoices and contracts, using these as collateral to secure massive loans from private-credit investors, including HPS Investment Partners, now part of BlackRock. The loans, reportedly exceeding $500 million, were allegedly backed by assets that existed only on paper. Investigators claim some assets were transferred offshore to India and Mauritius, and every customer email provided over the past two years was fabricated.

A Wall Street Journal report notes that the Garden City offices of Brahmbhatt’s companies were found vacant and locked, and Brahmbhatt has ceased communication with the lenders.

Current Status and Bankruptcy

Brahmbhatt and his companies have reportedly filed for bankruptcy, and the allegations have been formally disputed by his legal team. BNP Paribas also reportedly participated in financing some of the loans but has not issued a statement regarding the matter.

Outside a residence linked to Brahmbhatt, luxury vehicles including BMWs, a Porsche, a Tesla, and an Audi were observed, alongside a dust-covered package, suggesting the property has not been actively maintained.

Where Is Brahmbhatt Now?

Sources familiar with the situation told the WSJ that lenders believe Brahmbhatt is currently in India, but his exact location has not been confirmed.

Implications

This case highlights the risks associated with private-credit lending, particularly when loans are backed by less-transparent collateral. The incident underscores the importance of thorough due diligence and verification of borrower claims in large-scale lending operations.