ISLAMABAD – Global investment powerhouse BlackRock and multiple international lenders are reeling after losing over $500 million in an alleged multi-year fraud. The mastermind behind the scheme is reportedly an Indian-origin telecom executive, Bankim BrahamBhatt, whose sudden disappearance has left regulators and investors scrambling.
According to US court filing, Bhatt allegedly orchestrated the scam through his telecom companies, Broadband Telecom and Bridge Voice, by generating fake invoices and fictitious accounts receivable. These fraudulent documents created the illusion that his companies were financially stable, while, in reality, massive sums were quietly funneled to offshore accounts in India and Mauritius.
The lawsuit claims that Bhatt’s network owes over $500 million to HPS Investment Partners, a subsidiary of BlackRock, and other financial institutions. French bank BNP Paribas was also involved in financing these loans, although the bank has declined to comment on the matter.
The scandal erupted just months after BlackRock acquired HPS earlier this year to strengthen its presence in the private credit market, a move that now appears disastrously timed.
Earlier this year, an HPS employee noticed suspicious patterns in customer email addresses, which turned out to be fake domains. Further investigation revealed that several “clients” did not even exist, and many agreements were based on forged documents dating back to 2018.
When HPS officials confronted Bhatt, he initially attempted to evade questions and later stopped answering calls altogether. A check of HPS offices in Garden City, New York, revealed them closed and abandoned, raising alarms about the extent of the fraud.
The court complaint alleges that Bhatt created a fictitious balance sheet using paper assets to secure millions of dollars in loans from international investors. Funds obtained through these loans were then secretly transferred to offshore accounts in India and Mauritius, leaving global financiers holding the bag.
This shocking revelation exposes vulnerabilities in the global private credit market and serves as a cautionary tale for investors worldwide. With $500 million at stake and Bhatt still at large, authorities are now racing to track down the fugitive executive whose audacious scam has left an indelible mark on the financial world.
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