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Brahmbhatt, owner of Broadband Telecom and BridgeVoice, allegedly defrauded US lenders of about $500 million through fake customers and fake invoices, The Wall Street Journal (WSJ) reported.
BlackRock’s private credit arm HPS Investment Partners and several other lenders claim they have been victims of a massive fraud, the report said. The funds were allegedly secured using fake customer data and invoices as collateral, with part of the funds allegedly transferred to countries including India and Mauritius.
In August 2025, BlackRock and other creditors filed a lawsuit alleging that Brahmbhatt’s companies owed them more than $500 million. Around the same time, Brahmbhatt filed for bankruptcy on August 12, with his companies seeking protection under Chapter 11 of the US Bankruptcy Code.
The case comes on the heels of BlackRock’s acquisition of HPS Investment Partners as part of its expansion into the private debt market. It is also reported that French lender BNP Paribas has financed almost half of the loans involved.
HPS first extended loans to Brahmbhatt’s companies in September 2020, taking its total exposure to $430 million through August 2024, the report said.
The investigation revealed that fake email addresses and domains resembling those of legitimate telecom companies were used to create fake customer records. When confronted, Brahmbhatt reportedly dismissed the discrepancies as “routine errors” before ceasing communication with the lenders.
An HPS official who later visited the company’s office in Garden City, New York reportedly found it closed and deserted, with no employees present for several weeks.
Brahmbhatt, Founder of Bankai Group, has over three decades of experience in the telecom industry providing infrastructure and network services to global telecom operators. After the alleged fraud was exposed, his LinkedIn profile was removed, and the case is pending in a US court.