An Indian-origin financier has been accused of running a $100 million bank fraud scheme in California. He lived a double life of luxury, intimidation and blackmail, including hosting parties with sex workers and later using those events to pressure attendees, according to the New York Post.44-year-old Mahinder Makhijani was arrested on Wednesday after armed federal agents raided his mansion in Corona del Mar, an exclusive coastal neighborhood in Newport Beach, California. He is accused of bank fraud and faces up to 30 years in prison if convicted.Makhijani defrauded a local bank of approximately $100 million by forging real estate documents and inflating the value of properties used as collateral.
The money has not yet been refunded. He used Newport Beach-based Cantor Group V LLC and a network of companies to carry out the scheme. He and a subordinate altered title insurance records between September 2024 and April 2025 using Adobe software, changed metadata, and provided false documents to the bank while providing misleading explanations in calls and spreadsheets.But the accusations against Makhijani go beyond financial fraud, the New York Post reported.
According to court documents and witness statements, he hosted private parties involving drug and sex workers, some of which were attended by bank employees. He then used his knowledge of what happened at these events to blackmail participants and control employees and colleagues. He even threatened his subordinates, saying he would “kill them” and put “their families on the street” and “their children on welfare.” He is also accused of blackmailing employees after rallies.He ran his operation through intimidation, threats and violence. He directed his colleagues to target competitors, break into companies, and put pressure on competitors. In one case, he posted eviction notices in the homes of an opponent’s family members and even used a billboard to accuse an opponent of theft. Video evidence cited by prosecutors shows Makhijani wearing designer clothing directing his associates during attacks on security guards, including smashing windows and grabbing documents.Agents arrested him at his home early Wednesday after a dawn raid in which armed officers participated. He was taken away in handcuffs and taken to prison after briefly appearing in his pajamas.Makhijani lived a lavish lifestyle, traveling by private jet, wearing luxurious clothes and owning luxury cars including a Bentley, a Porsche and a Mercedes G-Wagon. He maintained two adjoining palaces, one of which was reserved for his in-laws.Much of his wealth remains untraceable. “Makhijani has significant financial resources, but the government has not fully tracked and accounted for these resources, which are certainly not owned in Makhijani’s name,” the complaint said.The case also overlaps with a long-running business dispute involving the Laguna Hotel. In 2023, clashes linked to the dispute allegedly led to violence at the hotel, leading to its temporary closure. In May, arbitrators awarded about $1.34 billion to businessman Mohamed Honarkar, after finding that Makhijani violated the agreements and committed fraud.Makhijani had previously told his colleagues that he would flee to India if he was arrested.