Indian-Origin CEO Accused in $500 Million BlackRock Fraud Case in the US
Private-credit investors, including BlackRock and other lenders, have alleged they were victims of a &ldquo;breathtaking&rdquo; $500 million fraud orchestrated by an Indian-origin CEO in the United States.
According to an exclusive report by The Wall Street Journal, the lenders, including BlackRock&rsquo;s HPS Investment Partners, are attempting to recover hundreds of millions of dollars after accusing Bankim Brahmbhatt, the owner of telecom-services firms Broadband Telecom and Bridgevoice, of fabricating accounts receivable that were used as loan collateral.
The lenders filed a lawsuit in August, claiming Brahmbhatt&rsquo;s companies owe them over $500 million. 
The report also stated that French banking giant BNP Paribas helped finance the loans issued by HPS to Brahmbhatt&rsquo;s firms. 
BNP Paribas, one of Europe&rsquo;s largest lenders, declined to comment on the matter publicly. 
Brahmbhatt, however, has denied the fraud allegations through his lawyer.
Inside the Alleged $500 Million Scam
As per WSJ, BlackRock, the world&rsquo;s largest asset management firm, acquired HPS earlier this year as part of its expansion into private-asset investing. 
HPS began lending to Brahmbhatt&rsquo;s telecom-related entities in September 2020.
Over time, the investment grew from about $385 million in early 2021 to approximately $430 million by August 2024. 
BNP Paribas reportedly financed nearly half of these loans to Brahmbhatt&rsquo;s companies, including Carriox and its affiliates.
To verify the assets, HPS hired Deloitte for random customer checks and later appointed accounting firm CBIZ to conduct annual asset audits.
However, in July 2024, an HPS employee discovered irregularities in email addresses that appeared to be from Carriox&rsquo;s clients. 
Upon investigation, the lenders found that the emails originated from fake domains designed to imitate real telecom companies.
When confronted, Brahmbhatt initially dismissed concerns but later stopped responding to calls. 
When HPS representatives visited his company offices in July, they found them closed, with luxury vehicles including two BMWs, a Porsche, a Tesla, and an Audi parked outside, and an undelivered package gathering dust, according to WSJ.
Bankruptcies and Offshore Transfers
By August, Brahmbhatt&rsquo;s telecom companies had filed for bankruptcy. 
They were later joined in bankruptcy court by Carriox Capital II and BB Capital SPV, two of his financing entities.&nbsp;
Brahmbhatt himself also filed for bankruptcy on the same day.
The lenders allege that Brahmbhatt transferred assets that were pledged as loan collateral to offshore accounts in India and Mauritius. 
HPS has informed clients that it believes Brahmbhatt is currently in India.

BlackRock, BNP Paribas duped in $500M scam by Indian-origin telecom CEO

Indian-Origin CEO In $500M BlackRock Fraud

BlackRock, BNP Paribas duped in $500M scam by Indian-origin telecom CEO

November 1, 2025 | 16:25 IST