Outlook Business Desk
US investment major BlackRock has levelled allegations of a multi-million-dollar fraud against Indian-origin entrepreneur Bankim Brahmbhatt, who heads US-based telecom firms. Lenders allege his companies created fake customer invoices that were used to secure loans worth over $500 million.
Bankim Brahmbhatt, the founder, president, and CEO of US-headquartered Bankai Group, began his journey as a telecom engineer in 1989. Over the years, he expanded into satellite services, telecom billing, and digital financial solutions across developing markets.
Over the years, Brahmbhatt diversified from manufacturing push-button phones to offering advanced digital solutions. His flagship platform, Mobifine Allied, provides digital financial services across Africa, strengthening his position in global telecom and fintech integration.
HPS Investment Partners, according to The Wall Street Journal, started lending to firms linked to Brahmbhatt in 2020 and expanded its exposure to about $430 million by 2024, with BNP Paribas co-financing before discrepancies surfaced.
In July 2024, an HPS employee found customer emails from fake domains resembling real telecom firms. When questioned, Brahmbhatt dismissed the issue and later stopped responding, heightening doubts about his companies’ financial records.
Investigations by accounting firm CBIZ and law firm Quinn Emanuel uncovered fake invoices and customer emails. Belgian telecom company BICS confirmed no connection to the documents, describing it as a clear fraud attempt targeting the lenders.
Meanwhile, court filings reveal that fraudulent customer contracts date back to 2018. Assets used as loan collateral were allegedly transferred to offshore accounts in India and Mauritius before Brahmbhatt’s firms—Broadband Telecom and Bridgevoice—filed for bankruptcy protection.
HPS suspects Brahmbhatt is currently in India. His New York offices were found closed and empty. On 12 August 2024, he filed for personal bankruptcy, coinciding with his companies’ Chapter 11 bankruptcy filings in the US.
US courts are overseeing the ongoing bankruptcy and civil cases. While Brahmbhatt denies the allegations, his location remains uncertain. The extent of the alleged fraud and its impact on BlackRock and BNP Paribas continue to be investigated.