Bankim Brahmbhatt, the Indian-origin CEO of US-based telecom firms Broadband Telecom and Bridgevoice, has been accused of orchestrating a large-scale loan fra¥d that cost lenders, including BlackRock’s private credit unit, over $500 million, according to The Wall Street Journal.
Lenders allege that Brahmbhatt’s companies falsified accounts receivable to use as collateral, creating the appearance of strong business activity while secretly moving funds offshore to India and Mauritius.
A lawsuit filed in August claims the firms’ financial strength “existed only on paper.” Brahmbhatt, however, denies any wrongdoing.
The alleged scheme began in 2020 when BlackRock’s credit arm, HPS, started lending to one of Brahmbhatt’s financing companies. The loan amount eventually grew to about $430 million by 2024, with French banking giant BNP Paribas also involved in financing the debt.
The fra¥d reportedly came to light in July when HPS staff noticed that emails supposedly from Carriox (another Brahmbhatt-linked company) customers came from fake domains mimicking real telecom firms.
Further checks revealed that customer emails and contracts provided over the past two years were fabricated, and some fake documents dated as far back as 2018.
When questioned, Brahmbhatt initially dismissed the concerns but soon stopped responding. When investigators visited his company offices, they reportedly found them shut down.
Court filings also allege that assets meant to secure the loans were moved into offshore accounts in India and Mauritius.
Brahmbhatt’s companies filed for Chapter 11 bankruptcy in August — the same day Brahmbhatt himself filed for personal bankruptcy after agreeing to provide a personal guarantee for the loans. Lenders believe he is currently in India.
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