Who Is Mahender Makhijani? Financier Accused Of Conning Banks Out Of $100M And Hosting Lavish S*x Parties

Mahender Makhijani, a 44-year-old Indian-origin financier based in California, has found himself at the centre of serious fraud allegations after US authorities accused him of deceiving a bank out of nearly $100 million (£73 million).

Federal prosecutors claim that Makhijani manipulated documents related to real estate loans to secure financing under false pretences. The allegations have drawn attention not only for the scale of the purported fraud but also for separate claims regarding his personal conduct.

According to reports, Makhijani is accused of hosting lavish s*x parties and allegedly using them as a means of exerting pressure on attendees. The accusations have emerged alongside a federal criminal complaint that could carry severe consequences if proven in court. Authorities arrested Makhijani at his Newport Beach mansion, marking the latest development in a case that has attracted considerable public interest due to the alleged scheme's size and the claims surrounding his business dealings.

Arrested From Newport Beach Mansion

The arrest of Makhijani was confirmed by Bill Essayli, the First Assistant US Attorney for the Central District of California. According to Essayli, federal agents detained the 44-year-old at his mansion in Newport Beach on Wednesday morning.

In a statement shared on social media, Essayli said: 'Mahender Makhijani, 44, a lawful permanent resident from India living in Corona del Mar [California], was arrested this morning on a federal criminal complaint charging him with defrauding a bank out of nearly $100 million.'

Federal prosecutors allege that Makhijani controlled Cantor Group V LLC, a Newport Beach-based company that had a lending agreement requiring it to pledge only first-lien real estate loans to the bank involved in the case.

Authorities claim that between September 2024 and April 2025, Makhijani falsified title insurance policies to make it appear that Cantor held first-lien positions on certain properties, even though other creditors allegedly held priority claims.

Essayli stated that Makhijani and a subordinate allegedly forged documents using Adobe software, altered metadata, and submitted the allegedly falsified records to the bank. Prosecutors further claim that misleading explanations were provided to the lender through telephone calls and spreadsheets.

According to authorities, the allegedly falsified records were submitted to the bank as part of the arrangement involving real estate loans.

If convicted, Makhijani faces a statutory maximum sentence of 30 years in federal prison. He is expected to make his initial appearance before the US District Court in Santa Ana, California.

Discussing the wider implications of the allegations, Essayli said: 'Our nation's economy and welfare depend on a healthy banking system. When lenders are deceived, it has downstream effects on consumers and businesses.'
He also stressed that 'all defendants are presumed innocent until convicted in court'.

Accused Of Threats And Intimidation

Alongside the banking fraud allegations, court documents and witness statements contain additional accusations regarding Makhijani's conduct in business disputes.

According to the filings, Makhijani allegedly used threats and intimidation, often violent, to gain an upper hand on business rivals.

The allegations also extend to a dispute involving businessman Mohammad Honarkar. Reports state that Makhijani is alleged to be liable for more than £949 million in damages connected to real estate dealings involving Honarkar.

Honarkar described what he claimed were threats made against him and his family. Speaking to media outlets, he recalled being warned about the consequences he could face.

'He's going to destroy my reputation in Laguna. He's going to make sure my kids and my grandkids are on the street. He's going to make my life miserable,' Honarkar said. 'That's what he said.'

Separate reports have also alleged that Makhijani hosted lavish s*x parties and used them as a way to place pressure on attendees. Those claims have attracted attention alongside the allegations outlined in the federal complaint.

At this stage, the accusations against Makhijani remain allegations, and the case will proceed through the US legal system. Prosecutors maintain that he falsified title policies and submitted forged documentation to a bank, while court documents and witness statements contain separate allegations concerning threats, intimidation, and the reported s*x parties.

The outcome of the criminal proceedings will determine whether the allegations can be proven in court. Until then, Makhijani remains presumed innocent under US law, as stated by federal authorities.