US Telco CEO Defrauds BlackRock in a $500M Mind-Boggling Scam

The owner of relatively obscure telco companies Broadband Telecom and Bridgevoice, Bankim Brahmbhatt, has been accused of defrauding BlackRock, the world's largest asset manager, of approximately $500 million (£369.8 million). The scale of the scam has alarmed BlackRock's credit investing division and other major lenders, who are now scrambling to recover the outstanding debt.

BlackRock's HPS Investment Partners alleges that Brahmbhatt engaged in a complex scheme of creating fake invoices and accounts receivable, which he then pledged as collateral for loans. A lawsuit filed by the lenders reveals that Brahmbhatt's network of companies was used to manufacture an illusion of financial health on paper, while secretly moving money offshore to India and Mauritius.

Fraud Sustained Despite Hiring Auditors

Despite efforts to verify his assets through auditors, the fraud persisted over several years. BlackRock had acquired HPS Investment Partners in early 2025, as part of its push into private credit markets. According to reports from The Wall Street Journal, BNP Paribas played a significant role in financing loans to Brahmbhatt's companies. HPS began issuing loans to at least one financing branch linked to Brahmbhatt's telcos as early as September 2020, expanding to a total of $385 million (£284.8 million) in 2021 and reaching $430 million (£318.1 million) by August 2024.

BNP Paribas financed nearly half of these debts, providing almost 50% of the funding to Brahmbhatt's entities, including Carriox. To verify asset authenticity, HPS engaged Deloitte to perform random customer checks on the invoices. Later, they appointed CBIZ for annual asset audits, attempting to ensure the debts were backed by real assets.

A Regular Employee Discovers Massive Irregularities

However, the fraud was uncovered by a regular employee at HPS. In July of this year, an employee identified irregularities in customer email addresses associated with Carriox clients, which were used to verify invoices. Further investigation revealed that many of these emails originated from fake domains designed to mimic legitimate telecom firms. Subsequent reviews of past correspondence uncovered a pattern of similar discrepancies.

When questioned by HPS officials, Brahmbhatt assured them that everything was in order, but he then ceased all communication. An official from HPS even visited Brahmbhatt's offices in Garden City, New York, only to find them shuttered. The office suite was deserted, and an employee at an adjacent office confirmed that they hadn't seen anyone near Brahmbhatt's premises in some time.

Officials then attempted to contact Brahmbhatt at his residence in Garden City. The driveway was lined with luxury cars—BMWs, a Porsche, a Tesla, and an Audi—and there was a package collecting dust on the front step, suggesting he had been absent for some time.

Invoices Forged for Years

Suspicion of fraud prompted further investigation by CBIZ and law firm Quinn Emanuel. Their findings confirmed that many of the customer emails used to verify invoices did not match the official web domains of the supposed clients. One such client, Belgian telecom firm BICS, explicitly denied any links to the emails provided by Brahmbhatt's companies. A security staff member at BICS described the emails as part of a confirmed fraud attempt.

Lenders also discovered that all customer email addresses provided over the past two years to verify invoices were fabricated. Additionally, fraudulent contracts dating back to 2018 were uncovered. Lawyers representing the lenders stated that Brahmbhatt had constructed an elaborate, fictitious balance sheet, which existed only on paper. He is also accused of transferring assets that should have been pledged as collateral into offshore accounts.

In August, Brahmbhatt's telco companies filed for bankruptcy, joined in court by Carriox Capital II and BB Capital SPV. HPS believes Brahmbhatt is currently in India, and authorities are working to locate him.

This case underscores the alarming extent of financial deception and the vulnerabilities within corporate verification processes, especially in high-stakes lending. As the investigation continues, many are left questioning how such a significant fraud went unnoticed for so long, and what reforms might be necessary to prevent similar schemes in the future.