CEO Accused in $500 Million Loan Fraud Involving BlackRock Partner

A major financial dispute has emerged after US-based entrepreneur Bankim Brahmbhatt, founder of Broadband Telecom and Bridgevoice, was accused of engineering a $500 million loan fraud that implicated HPS Investment Partners, the private-credit affiliate linked to BlackRock, and other creditors.

Reports in the Wall Street Journal say HPS and its financing partner BNP Paribas are attempting to recover substantial losses after what investigators describe as an extensive fraud scheme.

The lawsuit filed in August alleges Brahmbhatt's businesses obtained financing by presenting millions in purported receivables—invoice claims from telecom customers—as collateral. Lenders later found that many of those receivables did not exist.

When lenders verified the invoices, investigators found that large sums had been redirected to offshore accounts in India and Mauritius. Allegedly, the scheme used fabricated invoices, forged contracts and falsified email chains to create the appearance of legitimate business activity.

HPS began lending in September 2020, growing its exposure to $385 million by early 2021 and to $430 million by August 2024, sources told the WSJ. BNP Paribas reportedly financed nearly half of the loans.

The matter came to light in July after an HPS employee noticed anomalies in customer email addresses tied to Carriox Capital, an invoice-financing arm linked to Brahmbhatt. Brahmbhatt reportedly dismissed initial concerns and subsequently disappeared.

Investigators who visited Carriox's Garden City, New York office found it closed. Neighbours reported the office appeared vacant, while luxury vehicles were seen parked at Brahmbhatt's residence and an uncollected package remained at the door.

HPS officials suspect Brahmbhatt has returned to India, though his exact location is not known. Several of his firms, including Carriox Capital, later filed for Chapter 11 bankruptcy protection in the United States.

Brahmbhatt, a telecom executive with more than three decades in the sector and founder of the Bankai Group, has deleted his LinkedIn profile and has not publicly responded to the accusations.

What began as a lending relationship between large financial institutions and a seasoned telecom operator has escalated into a significant fraud case, leaving lenders working to trace funds and establish accountability.