An Indian-origin financier has been accused of orchestrating a $100 million bank fraud scheme in California, living a double life of luxury, intimidation, and blackmail. According to the New York Post, Mahender Makhijani, 44, hosted parties involving sex workers and later used those events to pressure attendees.
Arrest and Charges
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 faces charges of bank fraud and could be sentenced to up to 30 years in prison if convicted.
The Fraud Scheme
Prosecutors allege that Makhijani defrauded a local bank of nearly $100 million by falsifying real estate documents and inflating property values used as collateral. The money has not yet been recovered. He used Newport Beach-based Cantor Group V LLC and a network of companies to carry out the scheme. Between September 2024 and April 2025, he and a subordinate altered title insurance records using Adobe software, changed metadata, and submitted forged documents to the bank while providing misleading explanations in calls and spreadsheets.
Beyond Financial Fraud
The allegations against Makhijani extend beyond financial crimes. According to court documents and witness statements, he hosted private parties involving drugs and sex workers, some of which were attended by bank employees. He then used knowledge of these events to blackmail participants and maintain control over staff and associates. He allegedly threatened subordinates, saying he would “kill” them, put their “family on the street,” and their “kids on welfare.”
Makhijani ran his operation through intimidation, threats, and violence. He directed associates to target rivals, break into businesses, and pressure competitors. In one instance, he placed eviction notices at the homes of a rival’s family members and used a billboard to accuse an opponent of robbery. Video evidence cited by prosecutors shows Makhijani in designer clothing directing associates during attacks on security guards, including smashing windows and seizing documents.
Arrest and Lifestyle
Agents arrested him at his home early Wednesday after a dawn raid involving armed officers. He was led out in handcuffs and taken to jail after briefly appearing in pajamas. Makhijani lived a lavish lifestyle, traveling by private jet, wearing designer clothing, and owning luxury cars including a Bentley, Porsche, and Mercedes G-Wagon. He kept two mansions side by side, one reserved for his in-laws.
Much of his wealth remains untraceable. “Makhijani has significant financial resources, but the government has not fully traced and accounted for those resources, which are almost certainly not held in Makhijani’s name,” the complaint states.
Related Business Dispute
The case overlaps with a long-running business dispute involving Hotel Laguna. In 2023, clashes linked to the dispute allegedly led to violence at the hotel, forcing temporary closures. In May, arbitrators awarded about $1.34 billion to businessman Mohammad Honarkar, finding that Makhijani had breached agreements and committed fraud. Makhijani had previously told associates he would flee to India if caught.
