Indian-Origin Financier Mahender Makhijani Used Sex Parties To Defraud US Bank Of $100 Million

An Indian-origin financier has been arrested in the United States for allegedly conning a bank out of almost $100 million (approximately Rs 954.2 crore) by manipulating title records of insurance policies. The accused, identified as Indian-born businessman Mahender Makhijani, 44, has been living in the US on a Green Card. 

He was arrested at his tony Newport Beach mansion on Wednesday morning and faces a maximum sentence of 30 years in prison if convicted. The man is also accused of using a series of supposed strong-arm tactics, including deploying armed henchmen to seize hotels and a restaurant in a posh Southern California enclave and hosting sex and drug parties.

Cases Against Mahender Makhijani

"Mahender Makhijani, a lawful permanent resident from India living in Corona del Mar, was arrested this (Wednesday) morning on a federal criminal complaint charging him with defrauding a bank out of nearly $100 million," Bilal Essayli, First Assistant US Attorney for the Central District of California, said.

According to the US Internal Revenue Service (IRS), Makhijani falsified title insurance records, concealed true lien positions, and used a network of shell companies to mislead a federally insured bank. 

"Our special agents followed the money through layered transfers and disguised accounts, uncovering a scheme designed to deceive at every turn. When individuals manipulate documents and abuse financial systems for personal gain, IRS CI will expose the truth and ensure they are held accountable," said Darren Lian, Acting Special Agent in Charge, IRS Criminal Investigation's Los Angeles Field Office.

The affidavit filed with the complaint showed that Makhijani controls Cantor Group V LLC, a Newport Beach-based company with a lending relationship with the Bank. Under the terms of their agreement, the bank advanced nearly $100 million to Cantor to originate or buy loans secured by real estate.

Cantor was supposed to then pledge the loans it secured, and their underlying collateral, to the bank, paying back the bank from the loans' proceeds.

From September 2024 to April 2025, Makhijani allegedly falsified title insurance policies to make them state that Cantor was in the first lien position with respect to certain real estate serving as collateral.

After falsifying the title policies, Makhijani caused his then-employee to submit the false title insurance policies to the bank. Makhijani also allegedly engaged in several teleconferences with the bank's representatives and lied about the title issues that the bank had identified. 

Hosted Drug, Sex Parties

Court documents also showed that Makhijani is accused of hosting private parties involving drugs and sex workers, some of which were attended by bank employees. 

He then used knowledge of what happened at these events to blackmail participants and keep control over staff and associates. 

The documents claimed that Makhijani even threatened subordinates, saying he would “kill” them and put their “family on the street” and “their kids on welfare".

Last month, an arbitrator also reportedly found that Makhijani is liable for more than $1.3 billion (approximately Rs 12,391.6 crores) in damages over his real estate dealings with Laguna Beach businessman Mohammad Honarkar.

According to a New York Post report, court documents in both cases allege that Makhijani used threats, intimidation and even violence to gain an upper hand on business rivals, including Honarkar.