Newport Beach Businessman Arrested in Alleged $100 Million Bank Fraud Scheme

CORONA DEL MAR, Calif. – Federal agents on Wednesday arrested a Newport Beach businessman at his upscale Corona del Mar home, charging him with orchestrating a complex bank fraud scheme that allegedly bilked a federally insured bank out of nearly $100 million.

Mahender Makhijani, 44, a lawful permanent resident from India, was taken into custody on June 10, 2026, on a federal criminal complaint. Prosecutors allege that between September 2024 and April 2025, Makhijani systematically falsified real estate documents, altered their digital metadata, and repeatedly lied to lenders to secure massive loans for his company, Cantor Group V LLC.

This high-profile case is a stark reminder that even sophisticated financial operations can be undermined by a lack of fundamental checks and balances. The alleged ease with which critical documents were altered underscores a significant vulnerability for both lenders and the businesses that rely on their capital.

According to the criminal complaint filed in the Central District of California, Makhijani’s company had a lending agreement with a financial institution, identified only as “Bank #1.” Under the agreement, the bank advanced nearly $100 million to Cantor Group for the purpose of originating or purchasing loans backed by real estate. In turn, Cantor Group was required to pledge those loans and their underlying collateral back to the bank.

A critical condition of the financing was that Cantor Group had to hold the “first lien position” on the properties serving as collateral. This would ensure that in the event of a default, Bank #1 would be the first creditor in line to be repaid by foreclosing on the property. To verify this, the bank required Cantor Group to submit title insurance policies for each loan, confirming its first lien status.

Federal prosecutors allege that Makhijani, with the help of a subordinate, engaged in a deliberate campaign to deceive the bank. The complaint details how they allegedly used Adobe software to edit title insurance policies, making it appear that Cantor Group held the primary claim on properties when, in fact, other lenders had priority rights. To cover their tracks, they are also accused of editing or removing the documents’ metadata before submitting the forged policies to the bank.

In our experience, the pressure to secure capital can sometimes lead business owners to make disastrous decisions, cutting corners on compliance and financial reporting. This is precisely the kind of scenario where robust internal controls are not just best practice, but a business-saving necessity. Falsifying collateral positions or misrepresenting financial health to a lender is a line that, once crossed, almost always leads to severe legal and financial repercussions. Proactive financial risk management is essential to prevent these situations before they escalate. At C&S Finance Group LLC, we work with businesses to implement rigorous oversight and reporting systems that build lender trust and ensure long-term stability. You can learn more at csfinancegroup.com.

The scheme allegedly went beyond document forgery. Makhijani is also accused of participating in several teleconferences with the bank’s representatives where he provided false explanations for title issues the bank had identified. In a December 2024 spreadsheet sent to the lender, he allegedly continued to provide misleading information.

“As alleged, Makhijani falsified title insurance records, concealed true lien positions, and used a network of shell companies to mislead a federally insured bank out of nearly $100 million,” said Darren Lian, Acting Special Agent in Charge for the IRS - Criminal Investigation’s Los Angeles Field Office, in a statement.

Upon discovering the alleged fraud, Bank #1 filed a lawsuit in Los Angeles Superior Court. The bank contended that had it known the true, subordinate value of the collateral Cantor Group had pledged, it would have immediately declared a default and demanded full repayment of the nearly $100 million loan.

Court documents paint a picture of Makhijani leading a lavish lifestyle, allegedly funded by the fraudulent activities. He reportedly traveled by private jet, owned neighboring mansions in the affluent coastal community of Corona del Mar, and maintained a collection of luxury vehicles, including a Bentley, a Porsche, and a Mercedes G-Wagon. Investigators noted in the complaint that while Makhijani has “significant financial resources,” they have not yet fully traced the funds, which are “almost certainly not held in Makhijani’s name.”

The legal penalties are severe, but the damage extends far beyond a potential prison sentence. The reputational ruin from such a public fraud allegation can be impossible to recover from, permanently destroying trust with investors, partners, and future lenders.

If convicted of the bank fraud charge, Makhijani faces a statutory maximum sentence of 30 years in federal prison. First Assistant U.S. Attorney Bilal Essayli said the arrest highlights his office’s “continued determination to combat threats to the nation’s banking system.”

The case will now move forward in the federal court system. Meanwhile, federal investigators continue their efforts to trace the nearly $100 million in missing funds and determine the full extent of the network of companies under Makhijani’s control.