Indian-Origin Businessman Mahender Makhijani Arrested From Luxury California Mansion In $100 Million Bank Fraud Case, Faces 30 Years In Prison

Indian-origin businessman Mahender Makhijani, 44, was arrested by federal authorities in the United States for allegedly orchestrating a nearly USD 100 million bank fraud scheme. The arrest took place on Wednesday morning at his luxury residence in Corona del Mar, an upscale neighbourhood in Newport Beach, California. A video of his arrest has gone viral.

According to a New York Post report quoting the US Attorney’s Office for the Central District of California, Makhijani controlled Newport Beach-based Cantor Group V LLC, which had a lending agreement requiring it to pledge only first-lien real estate loans as collateral to a victim bank. Investigators allege that between September 2024 and April 2025, Makhijani falsified title insurance policies to falsely portray that Cantor held first-priority claims on certain real estate loans when, in reality, other creditors had superior positions.

Federal prosecutors claim Makhijani and an associate altered documents using Adobe software, manipulated metadata and submitted forged records to the bank. Authorities further allege that misleading explanations were provided through spreadsheets, phone calls and other communications to conceal the fraud.

The case comes amid wider scrutiny of Makhijani’s business dealings. Just last month, an arbitrator reportedly ordered him to pay more than USD 1.3 billion in damages in a civil dispute involving Laguna Beach businessman Mohammad Honarkar. Court filings in that matter accused Makhijani of engaging in intimidation tactics, including allegedly deploying armed individuals to take control of hotels, vacation rental properties and a restaurant linked to Honarkar during a bitter business conflict.

Legal documents also allege that mobile billboards targeting business rivals and local public figures were used as part of a campaign aimed at damaging reputations. Honarkar claimed Makhijani threatened to ruin him financially and personally amid the escalating dispute.

Federal authorities stressed that the criminal case focuses on the alleged bank fraud scheme. In a statement, First Assistant US Attorney Bill Essayli said the banking system depends on honesty and transparency, warning that fraud against lenders can have far-reaching consequences for consumers and businesses alike.

If convicted, Makhijani faces a maximum sentence of 30 years in federal prison. He appeared before a federal court in Santa Ana, California, following his arrest. Authorities stressed that all allegations remain accusations and that Makhijani is presumed innocent unless proven guilty in court.