Indian-Origin CEO Accuses BlackRock of $500 Million Fraud
In a significant financial scandal, Indian-origin telecom executive Bankim Brahmbhatt is facing allegations of orchestrating a $500 million fraud involving BlackRock’s private-credit division and several major lenders. This shocking revelation has sent the involved parties scrambling to recover the lost funds, as detailed in an exclusive report by the Wall Street Journal.
Details of the Allegations Against Brahmbhatt
Brahmbhatt, known for his ownership of Broadband Telecom and Bridgevoice, is accused of fabricating invoices and accounts receivable, which were used as collateral for significant loans. The lawsuit, filed in August 2023 in the United States, asserts that Brahmbhatt’s network of companies constructed a façade of financial stability while funneling money to offshore accounts in India and Mauritius.
Key Players in the Fraud Case
- Bankim Brahmbhatt: Indian-origin telecom executive accused of orchestrating the fraud.
- BlackRock’s HPS Investment Partners: The private-credit firm leading the lawsuit.
- BNP Paribas: French multinational bank accused of financing the loans.
- Quinn Emanuel: Law firm hired by HPS for investigative purposes.
- CBIZ: Accounting firm engaged for annual audits of Brahmbhatt’s businesses.
Timeline of Events
- September 2020: HPS starts lending to companies linked to Brahmbhatt.
- 2021: Total loans to Brahmbhatt’s entities increase from $385 million to $430 million.
- July 2025: Irregularities noticed by HPS staff lead to an internal investigation.
- August 2023: Lawsuit filed, detailing the fraudulent activities.
The fraud allegations emerged notably during a sensitive period for BlackRock, which had recently acquired HPS Investment Partners to strengthen its foothold in private credit markets. Brahmbhatt’s illicit actions allegedly resulted in losses exceeding $500 million for the lenders involved.
The Discovery of Fraudulent Activities
The investigation uncovered that emails provided by Brahmbhatt’s firms, meant for invoice verification, were fraudulent. An employee from HPS first flagged the issue in July 2025 after noticing discrepancies in customer email addresses, many of which were linked to fake domains. Attempts to contact Brahmbhatt went unanswered, and his offices appeared deserted when visited.
Findings of the Investigation
According to reports, the legal and accounting firms found that all customer emails submitted for verifying invoices were fraudulent. Some contracts dating back to 2018 were also forged. A significant case involved BICS, a Belgian telecommunications company, which confirmed it had no ties to the emails provided by Brahmbhatt’s firm.
The lenders’ lawsuit outlined that Brahmbhatt created a deceptive balance sheet of assets existing only on paper. Furthermore, it alleged that he illegally transferred assets to offshore accounts, further complicating the financial landscape.
This unfolding story serves as a critical warning for lenders and highlights the importance of rigorous due diligence in the financial sector.
