Mahender Makhijani, 44, of Corona del Mar, California, was arrested on Wednesday on a federal criminal complaint alleging that he helped defraud a bank out of nearly $100 million by manipulating title policies linked to real-estate-backed loans, according to the US Department of Justice.
Prosecutors said Makhijani controlled Cantor Group V LLC, a Newport Beach-based company that had a lending relationship with the bank, and that he was expected to make his initial court appearance in Santa Ana later that day.
The complaint, the DOJ noted, is an allegation and not proof of guilt.
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BOOM 💥
— MJTruthUltra (@MJTruthUltra) June 11, 2026
Federal agents raided Indian-born financier Mahender Makhijani at his mansion in Calfornia after defrauding a local bank out of almost $100 million.
He is accused of defrauding a federally insured bank out of nearly $100 million by systematically falsifying documents… pic.twitter.com/HwqKQ8SSAU
The alleged mechanics of the scheme
According to the Justice Department, the alleged scheme centred on loans Cantor had originated or bought and then pledged to the bank as collateral.
Bank policy required those loans to be backed by first-lien positions, but prosecutors said Makhijani falsified title insurance policies between September 2024 and April 2025 so they falsely showed Cantor in the first-lien position when other creditors were actually ahead.
The filing says the altered policies were edited in Adobe, with metadata changed or removed after documents were printed and scanned, and that false explanations were later submitted to the bank in a spreadsheet.
Mahender Makhijani, 44, a lawful permanent resident from India living in Corona del Mar, was arrested this morning on a federal criminal complaint charging him with defrauding a bank out of nearly $100 million.
— F.A. United States Attorney Bill Essayli (@USAttyEssayli) June 10, 2026
Makhijani controlled Cantor Group V LLC, a Newport Beach-based… pic.twitter.com/wEcSe5mQpW
Investigators outline the allegations
Bill Essayli, the First Assistant US Attorney for the Central District of California, said: “When criminals are allowed to deceive lenders, the spillover effects can harm consumers and businesses.”
He added that the arrest showed the office’s “continued determination to combat threats to our nation’s banking system.”
Darren Lian of IRS Criminal Investigation said: “As alleged, Mr. 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 $100 million.”
The case is linked to a civil lawsuit filed by Western Alliance Bancorp in August 2025, in which the bank said it was owed $98.6 million and accused Cantor Group V of providing misleading title documents.
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What comes next in the case
Reuters reported that Makhijani could face up to 30 years in prison if convicted.
The DOJ said the investigation remains active and is being handled by IRS Criminal Investigation, the FBI, the FDIC Office of Inspector General, the Federal Housing Finance Agency Office of Inspector General and the Federal Reserve and Consumer Financial Protection Bureau’s inspector general office.
The department also said Cantor Group V was supposed to repay the bank from proceeds generated by the loans it secured, underscoring how the alleged misstatements could have affected the lender’s decision-making and default calculations.
FAQs
Q1: Who is Mahender Makhijani?
Ans: Mahender Makhijani is a California-based financier who has been accused by US federal prosecutors of participating in an alleged bank fraud scheme involving nearly $100 million.
Q2: Why was Mahender Makhijani arrested?
Ans: According to the US Department of Justice, Makhijani was arrested over allegations that he falsified title insurance records and misrepresented loan collateral to a federally insured bank.
