BlackRock’s private-credit investing arm and several major lenders are working to recover more than $500 million lost in an alleged loan fraud scheme they describe as “breathtaking” in scope, involving fabricated invoices and fictitious customer accounts, according to a report by the Wall Street Journal.
The lenders, including BlackRock’s HPS Investment Partners, have filed suit against Bankim Brahmbhatt, the Indian-origin owner of telecom-services firms Broadband Telecom and Bridgevoice, according to the Wall Street Journal report.
The lawsuit, filed in August in the United States, accuses Brahmbhatt of creating fake invoices and accounts receivable that served as collateral for the substantial loans.
According to the legal complaint, Brahmbhatt’s network of companies presented an illusion of financial health on paper while allegedly moving money offshore to India and Mauritius.
Source: Agencies / MoneyControl.com
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