Indian-origin businessman accused of fraud against international banks:Alleged in ₹4,440 crore scam involving banks like BlackRock; know about Bankim Brahmbhatt

A fraud of $500 million, approximately ₹4,440 crore, has been reported involving global banks such as the US company BlackRock’s private credit unit HPS Investment Partners and France’s BNP Paribas. Indian-origin telecom businessman Bankim Brahmbhatt is accused of committing this fraud against these banks. According to a report by the Wall Street Journal, Bankim Brahmbhatt is alleged to have secured loans by creating fake telecom assets, invoices, emails, and contracts. This fraud was uncovered in July 2024, after which his companies and Brahmbhatt himself went bankrupt. Fraud through fake invoices and websites According to court filings, Broadband Telecom and Bridgevoice founder and CEO Bankim Brahmbhatt took loans by showing future customer payments as collateral through asset-based financing. Fake invoices, forged emails, and false contracts were created. Even fake websites were made to resemble real telecom clients in order to deceive auditors and lenders. Every verification email from the past two years was fake, and this fraud had been going on since 2018. The total loan fraud was estimated at over 500 million dollars. How the fraud was caught, revealed through HPS audit In July 2024, an HPS employee noticed irregularities in customer email addresses. Upon cross-verification, Belgian telecom company BICS stated they had no dealings with Bridgeways, and the emails were confirmed as fraud attempts. Following this, investigations by Deloitte and CBIZ proved that customer data, invoices, and contracts were all fake. Brahmbhatt’s office closed, filed for bankruptcy When lenders tried to contact him, Brahmbhatt stopped taking calls and emails. Investigators found the New York office locked, his home empty, and luxury cars parked outside. According to reports, he has fled to India or Mauritius. In August 2024, Broadband Telecom, Bridgevoice, Carriox Capital II, and BB Capital SPV went bankrupt. On August 12, Brahmbhatt filed for personal bankruptcy. Business was legitimate and investigation is incomplete: Lawyer HPS exposure increased from $385 million (Rs 3,418 crore) in 2021 to $430 million (Rs 3,817 crore). BNP Paribas has kept a provision of $220 million (Rs 1,953 crore). Brahmbhatt’s lawyer called all allegations misleading and baseless. The lawyer says the company’s business was legitimate and the investigation is incomplete. Limited impact on BlackRock BlackRock’s private credit unit HPS Investment Partners manages assets worth $179 billion (Rs 15.89 lakh crore), so this loss is manageable. However, BlackRock has started reviewing the due diligence and verification process in its private credit portfolio. All lenders will now try to recover through bankruptcy court. Who is Bankim Brahmbhatt? Brahmbhatt has long been active in international telecom services. He started companies like Broadband Telecom and Bridgevoice, which dealt in the wholesale business of voice and data traffic between global carriers. They had a network in America, Europe, and Asia, with an office in Garden City, New York, and were associated with investment entities like Carriox Capital-II and BB Capital SPV. They were considered successful as an NRI businessman, but are now involved in a fraud case. Bankim Brahmbhatt’s connection with India: