An Indian-origin businessman, Bankim Brahmbhatt, is the central figure in a major fraud scandal—labeled “breathtaking”—which has reportedly left BlackRock’s private-credit arm and other lenders scrambling to recover over $500 million.
Bankim Brahmbhatt-who is he?
Bankim Brahmbhatt owns two lesser-known telecom-services firms, Broadband Telecom and Bridgevoice, through the Bankai Group. The Bankai Group claims to be a global leader offering infrastructure and connectivity solutions to operators of telecom services at all levels worldwide. A July social media post describes Brahmbhatt as President and CEO of the Group.
Until recently, Brahmbhatt had offices in Garden City, N.Y. There is very little about him online, and a LinkedIn profile that seemed to belong to him is now said to be deleted.
The Allegations: Fabricated Collateral and Offshore Transfers
Lenders, including HPS Investment Partners-a private-credit giant recently acquired by BlackRock-allege that Brahmbhatt created a complex web of financing entities, including Carriox Capital and BB Capital SPV, to borrow hundreds of millions of dollars.
The core accusation is that, from 2018 onwards, Brahmbhatt systematically fabricated customer invoices and contracts, then used those phony accounts receivable as collateral for the loans, which topped $500 million.
Lawyers for the lenders wrote in a complaint that “Brahmbhatt created an elaborate balance sheet of assets that existed only on paper,” according to the Wall Street Journal. What’s more, the lenders say their probe uncovered evidence that every customer email provided over the last two years was phony.
They further accuse him of transferring the pledged assets into offshore accounts, first in India and later in Mauritius. The attorney for Brahmbhatt has publicly denied the fraud allegations.
Bankruptcy filings and search for the accused
The financial collapse happened fast:
Brahmibhatt’s telecom companies declared bankruptcy last August.
He personally filed for Chapter 11 bankruptcy on August 12, the same day his companies entered bankruptcy proceedings. Two financing vehicles, Carriox Capital II and BB Capital SPV, also submitted bankruptcy protection filings last week. Lenders said they believe Brahmbhatt is now in India. A representative of HPS went to his offices in Garden City in July and found they were locked up and empty.
Luxury cars remained parked outside a residence next door listed as belonging to Brahmbhatt, but the office suite was still locked up and empty Wednesday. BNP Paribas is also reported to have provided debt financing for the loans issued by HPS Investment Partners, but so far, the bank has refused to comment on the subject.
Disclaimer : This story is auto aggregated by a computer programme and has not been created or edited by DOWNTHENEWS. Publisher: ZEE News
