An Indian-origin entrepreneur, Bankim Brahmbhatt, has become the focus of a massive alleged $500 million corporate fraud that has stunned some of Wall Street’s biggest private-credit investors, including BlackRock’s HPS Investment Partners, according to a report by The Wall Street Journal (WSJ).
Brahmbhatt, who owned telecom service firms Broadband Telecom and Bridgevoice, is accused of fabricating accounts receivable that were used as collateral to secure large-scale loans. Lenders allege he constructed a complex web of financing vehicles — including Carriox Capital and BB Capital SPV — to raise hundreds of millions from private investors.
Who Is Bankim Brahmbhatt?
Public information about Brahmbhatt is scarce. His LinkedIn profile has been deleted, and his two companies fall under the Bankai Group, which previously identified him as President and CEO. The group describes itself as a global telecom and infrastructure solutions provider, serving operators worldwide.
Until mid-2025, Brahmbhatt’s offices were located in Garden City, New York, but were found closed and locked in July, according to WSJ. His companies — along with Carriox Capital II and BB Capital SPV — filed for bankruptcy in August, and Brahmbhatt himself filed for personal bankruptcy on August 12, the same day.
Details of the Alleged Fraud
According to court documents, lenders uncovered fabricated invoices, fake customer emails, and forged contracts dating back as far as 2018. The alleged falsifications were used to inflate revenue and secure loans against non-existent assets.
Lawyers for the lenders described the operation as an “elaborate balance sheet of assets that existed only on paper.” They also claim Brahmbhatt moved pledged assets offshore to India and Mauritius.
While Brahmbhatt’s lawyer has denied all allegations of fraud, the damage to investors has been significant. BlackRock’s private-credit division, which recently acquired HPS Investment Partners, is now leading recovery efforts.
Meanwhile, BNP Paribas, which helped finance some of the loans, has declined to comment on the unfolding case.
Current Status
Sources told WSJ that lenders believe Brahmbhatt is currently in India. His alleged actions have raised alarm bells across the private credit sector, where complex financing structures often operate with limited transparency.
The case marks one of the largest private-credit frauds in recent years, shaking investor confidence in what has become a booming market for non-bank lending.
