Indian-origin businessman Bankim Brahmbhatt, once a celebrated telecom entrepreneur, is now accused of orchestrating a $500 million loan fraud that has shaken confidence in the global private-credit market.
According to filings in US courts, Brahmbhatt’s companies namely Bridgevoice Inc. and Broadband Telecom Inc., operating under the Bankai Group, allegedly obtained hundreds of millions of dollars in loans from major investors, including HPS Investment Partners (later acquired by BlackRock) and BNP Paribas, by pledging fake customer invoices and receivables as collateral.
Investigators allege that the companies created fabricated email domains and forged documents to mimic real telecom clients and validate non-existent receivables. The deception reportedly lasted for nearly four years, during which the firms expanded their borrowing limits and presented themselves as high-growth global service providers.
The alleged fraud began to unravel in July 2025, when a compliance officer at HPS noticed irregularities in email verifications sent to supposed customers. A deeper probe exposed that many of the “clients” did not exist, triggering a rapid collapse of the companies’ finances.
By August 2025, Brahmbhatt’s offices in Garden City, New York, were found locked, and his companies filed for Chapter 11 bankruptcy. He has also filed for personal bankruptcy, while his current whereabouts remain unknown. Some lenders believe he may have returned to India.
The scandal has sparked shockwaves through the $2 trillion private-credit industry, raising questions about the lack of transparency and due diligence in high-yield lending. Financial experts warn that the case could prompt tighter regulatory scrutiny of private-debt transactions and collateral verification mechanisms.
Brahmbhatt, however, denies the allegations, maintaining that his businesses were legitimate and faced liquidity challenges amid global market disruptions.
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