A 44-year-old Indian-American man has been arrested in California for allegedly defrauding a federally insured bank of nearly USD 100 million by manipulating title insurance records and using shell companies to disguise loan positions, authorities said.
Mahender Makhijani, who has been living in the United States on a Green Card, faces a maximum sentence of 30 years in prison if convicted in the case involving alleged financial fraud linked to real estate lending operations.
"Mahender Makhijani, a lawful permanent resident from India living in Corona del Mar, was arrested this (Wednesday) morning on a federal criminal complaint charging him with defrauding a bank out of nearly USD 100 million,” Bilal Essayli, First Assistant US Attorney for the Central District of California, said.
Officials said the alleged scheme involved falsifying documents to mislead the lending institution about collateral positions and loan security.
As alleged, Makhijani falsified title insurance records, concealed true lien positions, and used a network of shell companies to mislead a federally insured bank out of nearly USD 100 million,” said Darren Lian, Acting Special Agent in Charge, IRS Criminal Investigation’s Los Angeles Field Office.
In a statement, authorities underscored enforcement action against financial crimes targeting banking systems.
“Our special agents followed the money through layered transfers and disguised accounts, uncovering a scheme designed to deceive at every turn. When individuals manipulate documents and abuse financial systems for personal gain, IRS CI will expose the truth and ensure they are held accountable,” Lian said.
According to an affidavit filed with the complaint, Makhijani controls Cantor Group V LLC, a Newport Beach-based firm that maintained a lending relationship with the bank.
Under the terms of the agreement, the bank allegedly advanced nearly USD 100 million to Cantor to originate or purchase loans secured by real estate, with the expectation that those loans and underlying collateral would be pledged back to the lender.
Investigators said that between September 2024 and April 2025, Makhijani allegedly falsified title insurance policies to show Cantor held first lien positions on certain real estate assets used as collateral.
He then allegedly directed an employee to submit the forged documents to the bank and participated in multiple teleconferences with bank representatives, during which he allegedly misrepresented the status of identified title issues.
