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BlackRock Hit by ‘Breathtaking’ $500 Million Scam, Indian-Origin CEO Brahmbhatt Vanishes
Brahmbhatt allegedly used fake invoices and accounts receivable to secure $500 million in loans, with nearly half financed by BNP Paribas, lenders claim.
- On Thursday, Bankim Brahmbhatt was accused of running a $500 million fraud targeting HPS Investment Partners and other lenders, The Wall Street Journal reported.
- Lenders filed a lawsuit in August alleging Brahmbhatt misled them by pledging non-existent revenue streams as collateral for loans and filed for personal bankruptcy on August 12, the same day his companies sought Chapter 11 protection.
- HPS exposure rose starting in September 2020, increasing to USD 385 million in early 2021 and USD 430 million by August 2024, with BNP Paribas financing nearly half through two HPS credit funds.
- Several firms linked to Brahmbhatt, including Carriox Capital, have filed for Chapter 11 bankruptcy protection, while his lawyer denied the allegations and visits found his Garden City office and residence locked or vacant on Wednesday.
- The case has renewed scrutiny of the private credit market as HPS told clients it believes Brahmbhatt may be in India and lenders say funds were diverted offshore to India and Mauritius.
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A huge financial scandal shakes the private debt market: more than $500 million has become volatile in a fraud involving Broadband Telecom. BNP Paribas and BlackRock's subsidiary, HPS, are now trying to recover the lost funds.
BlackRock fraud: Indian-origin CEO accused of USD 500 million scam in US | All you need to know
A US based telecom businessman of Indian origin, Bankim Brahmbhatt, has been accused of carrying out a USD 500 million loan fraud linked to HPS Investment Partners, a lender backed by BlackRock.
·India
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Coverage Details
Total News Sources20
Leaning Left0Leaning Right7Center3Last UpdatedBias Distribution70% Right
Bias Distribution
- 70% of the sources lean Right
70% Right
C 30%
R 70%
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