$500 million fraud: Indian-origin telecom CEO accused of targeting BlackRock

Washington: BlackRock, the world's largest asset management firm, has suffered a staggering loss of over $500 million due to a massive loan fraud scheme involving Indian-origin telecom executive Bankim Brahmbhatt. The fraud, described by insiders as "breathtaking," was orchestrated through Brahmbhatt’s companies, which fabricated fake invoices and accounts receivable to secure multimillion-dollar loans from BlackRock’s private credit division and other major lenders.

According to a report by the Wall Street Journal, the scheme involved presenting fictitious customer receivables from prominent telecom operators such as T-Mobile and Telstra, creating an illusion of financial health. These fake documents were used as collateral to obtain sizeable loans since 2020 via Brahmbhatt's telecom financing firm Carriox Capital. The fraud came to light when discrepancies were uncovered in the borrower’s documentation, including the use of fake email domains for purported customers. These revelations led to Carriox filing for bankruptcy in August 2025, while Brahmbhatt declared personal bankruptcy.

BlackRock’s private credit arm, part of the firm’s $12 billion acquisition of HPS Investment Partners, was the primary lender, with BNP Paribas and other banks also significantly exposed. Legal actions have been initiated to recover the lost funds. The scandal has raised serious questions about due diligence and risk oversight in private credit markets, particularly after such a sizeable loss emerged post a major acquisition.