Sat Nov 01 06:21:17 UTC 2025: BlackRock and Major Lenders Scramble to Recover $500M in Alleged Loan Fraud
New York, NY – Global investment firm BlackRock and several major lenders are reeling from an alleged $500 million loan fraud orchestrated by telecom executive Bankim Brahmbhatt, according to a lawsuit filed in August and detailed in a Wall Street Journal report.
Brahmbhatt, owner of Broadband Telecom and Bridgevoice, is accused of fabricating invoices and accounts receivable to secure massive loans. The lenders, including BlackRock’s HPS Investment Partners, claim Brahmbhatt’s companies created a false image of financial health while allegedly moving assets offshore to India and Mauritius. BNP Paribas, which helped finance the loans, has declined to comment.
The alleged fraud came to light in July 2025 when HPS employees discovered irregularities in customer email addresses used to verify invoices. Investigations revealed fake domains mimicking real telecom companies and fabricated correspondence. Further investigation revealed that some contracts dating back to 2018 were forged. One security staffer from BICS, a Belgian telecom company, confirmed in writing that they had no connection to the emails shared by Brahmbhatt’s firm, calling it a confirmed fraud attempt. Brahmbhatt reportedly dismissed the concerns initially, then ceased communication.
An HPS employee visiting Brahmbhatt’s New York offices found them deserted. The lawsuit alleges that Brahmbhatt created an elaborate balance sheet of assets that existed only on paper and transferred assets to offshore accounts. Quinn Emanuel and CBIZ were hired to conduct a review and determined that every customer email provided by Brahmbhatt’s firms to verify invoices over the past two years was fraudulent.
The situation presents a challenge for BlackRock, which recently expanded into private-credit markets with the acquisition of HPS Investment Partners.
First Piper 