VOI World/ Desk
An Indian-American man has been arrested in California for allegedly orchestrating a fraud scheme that caused losses of nearly USD 100 million to a federally insured bank, according to US authorities.
Mahender Makhijani, 44, who resides in the United States as a Green Card holder, faces multiple federal charges linked to an alleged scheme involving falsified title insurance records and real estate-backed loans. If convicted, he could face a maximum prison sentence of up to 30 years.
According to investigators, Makhijani controlled a Newport Beach-based company that maintained a lending relationship with the affected bank. Federal authorities allege that between September 2024 and April 2025, false title insurance policies were submitted to make it appear that the company held priority claims over certain real estate assets used as collateral for loans.
Prosecutors claim the alleged misrepresentations enabled the company to secure substantial financing from the bank. Authorities further allege that title records were manipulated to conceal the true status of liens attached to the underlying properties.
The investigation is being led by the Internal Revenue Service’s Criminal Investigation division, which described the alleged fraud as a sophisticated scheme designed to mislead a federally insured financial institution. Officials estimate the losses incurred by the bank at nearly USD 100 million.
Court filings also allege the use of shell companies and inaccurate documentation as part of the operation. Federal prosecutors maintain that the accused deliberately concealed information to obtain financing that might otherwise not have been approved.
Makhijani has been taken into custody and is expected to face further legal proceedings in the United States. The allegations remain subject to judicial review, and no conviction has been recorded at this stage.
The case is among the larger alleged bank fraud investigations involving an Indian-origin individual in recent years and highlights the increasing scrutiny being applied to complex real estate financing transactions by US federal agencies.
