Lenders including BlackRock’s HPS Investment Partners allege that Brahmbhatt’s firms used fake invoices and customer accounts to secure massive loans before abruptly cutting off communication.
Investment giant BlackRock has reportedly become entangled in a multimillion-dollar fraud case linked to Bankim Brahmbhatt, the Indian American CEO of U.S.-based telecom companies Broadband Telecom and Bridgevoice, according to The Wall Street Journal.
Lenders — including HPS Investment Partners, the private credit arm of BlackRock — have accused Brahmbhatt’s companies of fabricating accounts receivable that were used as collateral to secure substantial loans. The lenders now allege they are owed more than $500 million.
Brahmbhatt’s attorney told the Journal that his client disputes the fraud allegations.
Brahmbhatt is the founder, president, and CEO of Bankai Group, a U.S.-headquartered telecommunications and fintech enterprise with operations spanning multiple continents.
In earlier interviews with Entrepreneur Middle East and Industry Chronicle, Brahmbhatt described himself as a telecom engineer turned entrepreneur, who began his journey in 1989 by setting up a push-button telephone manufacturing unit in India. Over the years, he diversified into satellite technology, telecom billing, and digital financial services.
READ: Indian American charged with $5 million Covid-relief loan fraud (March 1, 2022)
Bankai Group’s flagship platform, MobiFin Elite, provides digital financial solutions used by clients across several countries, particularly in Africa. Brahmbhatt frequently spoke of his vision to build a self-sustaining ecosystem for carriers, operators, and financial institutions — one that combines technical expertise with strong people skills.
Notably, Brahmbhatt’s LinkedIn profile, which previously had a sizable following, now appears to have been deactivated.
According to the Journal, HPS Investment Partners began lending to a financing arm linked to Brahmbhatt’s companies in September 2020, later increasing its exposure to about $430 million by August 2024, with BNP Paribas also participating in the financing.
The alleged fraud came to light in July 2024, when an HPS employee discovered that several customer emails appeared to originate from fake domains designed to mimic real telecom companies. When questioned, Brahmbhatt reportedly assured HPS officials there was nothing to worry about—and then ceased all communication shortly thereafter.
Subsequent investigations conducted by accounting firm CBIZ and law firm Quinn Emanuel, hired by the lenders, revealed that emails and invoices provided as proof of receivables had been falsified. A Belgian telecom company, BICS, confirmed to investigators that it had no connection to the emails used by Brahmbhatt’s firms, calling the incident a confirmed fraud attempt.
Court filings also allege that fraudulent customer contracts dated as far back as 2018, and that assets pledged as collateral were moved to offshore accounts in India and Mauritius.
By August 2024, Brahmbhatt’s companies—Broadband Telecom, Bridgevoice, Carriox Capital II, and BB Capital SPV had filed for bankruptcy, coinciding with lawsuits filed by the lenders. Around the same time, BNP Paribas disclosed adding €190 million (about $220 million) in loan-loss provisions linked to a “specific credit situation,” though it did not identify the borrower.
HPS has reportedly informed clients that it believes Brahmbhatt is currently in India. A visitor to his New York offices in July found them closed and vacant, the Journal noted.
In a further twist, Brahmbhatt himself filed for personal bankruptcy on August 12, the same day his companies sought Chapter 11 protection.
Despite the alleged scale of the fraud, sources cited by the Journal said the incident represents only a small fraction of HPS’s $179 billion in assets under management and is unlikely to affect BlackRock’s overall performance materially.
As U.S. courts oversee bankruptcy proceedings and civil litigation, Brahmbhatt has denied all allegations but remains untraceable as the investigation deepens.