Who is Bankim Brahmbhatt? Blackrock rocked by ‘breathtaking’ $500 million fraud
BlackRock’s private-credit arm and other lenders are scrambling to recover millions of dollars they have allegedly lost in a massive fraud by Bankim Brahmbhatt.
Bankim Brahmbhatt, an Indian-origin man is accused of carrying out a fraud - described as “breathtaking” - that has reportedly left American multinational investment company BlackRock’s private-credit investing arm and other lenders trying to recover hundreds of millions of dollars - more than $500 million to be precise.
The allegations of fraud have been disputed by Bankim Brahmbhatt, owner of a little-known telecom-services companies, who lenders have accused of fabricating accounts receivable that were supposed to be used as loan collateral, according to a Wall Street Journal report.
Who is Bankim Brahmbhatt
Bankim Brahmbhatt is the owner of Broadband Telecom and Bridgevoice, a pair of little-known companies in the global telecom-services sector. Not much information is available on Bankim Brahmbhatt on the internet, while a LinkedIn profile which appears to be his also now seems to be deleted.
The two companies belong to the Bankai Group, which, in a July X post, referred to Bankim Brahmbhatt as the president and CEO. The X bio of the Bankai Group describes itself as a “globally recognized leader in the telecommunications industry, cherishing telecom technology and carrier business fraternity with Telcos, Operators & more”.
Bankim Brahmbhatt's businesses provide infrastructure and connectivity solutions to other telecom operators worldwide, according to their website. Until recently, Brahmbhatt maintained offices in Garden City, New York, as per the WSJ report.
According to lenders, he built a network of financing vehicles - including Carriox Capital and BB Capital SPV - that borrowed hundreds of millions of dollars from private-credit investors led by BlackRock's HPS Investment Partners.
HPS Investment Partners is a private-credit giant recently acquired by BlackRock.
Lenders accuse him of fabricating customer invoices and using those fake receivables as collateral for loans exceeding $500 million. They claim he transferred assets offshore to India and Mauritius, while his companies - and he himself - have filed for bankruptcy His lawyer has disputed the fraud allegations.
Where is Bankim Brahmbhatt?
People familiar with the matter cited in the WSJ report say lenders believe Brahmbhatt is currently in India.
A person working with HPS reportedly visited the Garden City offices of Brahmbhatt’s companies in July and found them closed.
On Wednesday, the office suite remained locked and appeared vacant. A neighboring tenant said she hadn’t seen anyone enter the space recently.
At a nearby home listed as Brahmbhatt’s residence, several luxury cars – two BMWs, a Porsche, a Tesla, and an Audi – sat parked in the driveway beside a dust-covered package, the report said.
According to people familiar with the matter, BNP Paribas helped finance the loans issued by HPS Investment Partners, a private-credit giant recently acquired by BlackRock. BNP Paribas has yet to comment on the matter.
The lenders claim their investigation revealed that every customer email supplied over the past two years was fabricated - along with fake customer contracts dating back to 2018.
“Brahmbhatt created an elaborate balance sheet of assets that existed only on paper,” the WSJ letter quoted attorneys for the lenders writing in the complaint. They also allege he moved assets pledged as collateral into offshore accounts in India and Mauritius
Brahmbhatt’s telecom entities filed for bankruptcy in August, joined last week by Carriox Capital II and BB Capital SPV. Brahmbhatt himself filed for personal bankruptcy on August 12, the same day his companies entered Chapter 11.
