Bankim Brahmbhatt, the Indian-origin CEO of US-based firms Broadband Telecom and Bridgevoice, is facing serious allegations of financial fraud after investment giant BlackRock’s private credit arm and other lenders claimed they were defrauded of more than $500 million through a complex loan scheme.
According to a report by The Wall Street Journal, the lenders, including BlackRock’s credit division HPS, have filed a lawsuit accusing Brahmbhatt of fabricating accounts receivable and creating a false image of financial stability to secure massive loans. The alleged fraud also involved the transfer of funds to offshore accounts in India and Mauritius.
Court filings claim that Brahmbhatt’s companies used fake customer accounts and fraudulent documents to obtain financing. The alleged deception came to light in July when an HPS employee noticed irregularities in several email addresses supposedly belonging to customers of Carriox, one of Brahmbhatt’s firms. These addresses were traced to fake domains imitating real telecom companies.
When questioned by HPS officials, Brahmbhatt reportedly dismissed the concerns but soon stopped responding to calls. A subsequent visit by HPS representatives to the offices of his companies revealed that the premises had been shut down.
Investigations showed that every customer email provided by Brahmbhatt’s companies over the past two years was fake, and contracts dating back to 2018 were also found to be forged. “Brahmbhatt created an elaborate balance sheet of assets that existed only on paper,” lawyers representing the lenders stated in court documents.
The alleged scam dates back to September 2020, when HPS began lending to one of Brahmbhatt’s financing arms. The loan amount was later raised from $385 million in early 2021 to about $430 million by August 2024. French banking giant BNP Paribas also helped finance the loans but has declined to comment publicly on the case.
The lawsuit further claims that assets meant to serve as collateral were diverted to offshore accounts in India and Mauritius. Brahmbhatt’s telecom firms declared bankruptcy in August, and Carriox Capital II, along with another finance company, has joined the case in bankruptcy court.
HPS has informed some clients that Brahmbhatt is believed to be in India. The CEO, who had agreed to provide a personal guarantee for the loans, filed for bankruptcy on August 12—the same day his firms applied for Chapter 11 protection in the US.
Under Chapter 11 of the US Bankruptcy Code, a company can reorganize its business while continuing operations, subject to court approval. Creditors affected by the restructuring are allowed to vote on a reorganization plan, which the court may approve if it meets the necessary legal requirements.
The case has sent shockwaves across financial and telecom circles, as BlackRock and other lenders now seek to recover hundreds of millions of dollars allegedly lost in one of the most audacious corporate frauds in recent years.
