Highlights:
- Indian-American Mahender Makhijani was arrested in California.
- He is accused of defrauding a bank of nearly $100 million.
- Authorities allege he falsified title insurance records.
- Investigators say shell companies were used to hide the scheme.
- Makhijani faces up to 30 years in prison if convicted.
A 44-year-old Indian-American man has been arrested in California for allegedly defrauding a bank of nearly $100 million through a scheme involving falsified title insurance records and misleading information about real estate loans.
Mahender Makhijani, a lawful permanent resident from India living in Corona del Mar, was taken into custody on Wednesday. According to federal authorities, he has been charged in a criminal complaint related to an alleged fraud scheme targeting a federally insured bank.
“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.
Authorities said the case involves alleged manipulation of title insurance records and the concealment of important information related to real estate loans.
“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.
According to investigators, Makhijani controlled Cantor Group V LLC, a Newport Beach-based company that maintained a lending relationship with the bank involved in the case.
Under the agreement between the company and the bank, the bank advanced nearly USD 100 million to Cantor Group V LLC. The funds were intended to help the company originate or purchase loans secured by real estate.
As part of the arrangement, Cantor was expected to pledge the loans and the underlying real estate collateral to the bank. The company was also required to repay the bank using proceeds generated from those loans.
Federal investigators allege that from September 2024 through April 2025, Makhijani falsified title insurance policies connected to certain real estate properties used as collateral. The documents allegedly stated that Cantor held the first lien position on the properties when that was not the case.
Authorities claim that after the title insurance policies were falsified, Makhijani directed a then-employee to submit the altered documents to the bank.
The complaint further alleges that Makhijani participated in several teleconferences with representatives of the bank. During those discussions, investigators say he made false statements regarding title issues that had been identified by the bank.
In announcing the arrest, Essayli said the case demonstrates the continued efforts of federal authorities to protect the integrity of the nation’s banking system.
“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.
If convicted, Makhijani faces a maximum sentence of 30 years in federal prison. The investigation remains ongoing as authorities continue to examine the alleged fraud scheme and the financial transactions connected to the case.
