New York: An Indian-origin executive, Bankim Brahmbhatt, who headed US-based firms Broadband Telecom and Bridgevoice, has been accused of orchestrating a “breathtaking” financial fraud that cost global lenders — including BlackRock’s private credit arm — more than $500 million, according to The Wall Street Journal.

Brahmbhatt and his companies allegedly fabricated customer invoices and accounts receivable to create the illusion of financial stability, using them as collateral to secure massive loans.

The alleged scheme also involved forged emails, fake customer domains, and fictitious telecom contracts, the lawsuit claims.

The fraud traces back to September 2020, when HPS Investment Partners, BlackRock’s credit division, began lending to Brahmbhatt’s financing arms.

The debt ballooned from initial funding to $430 million by August 2024, backed in part by French banking major BNP Paribas.

However, suspicions arose this July when HPS staff discovered that several supposed clients’ emails came from fraudulent web domains. When questioned, Brahmbhatt reportedly dismissed concerns — before abruptly cutting off contact.

When lenders visited his offices, they found them closed. Further investigation revealed that every single customer email and contract provided over two years was fake, and that funds had been moved offshore to India and Mauritius, according to court filings.

“Brahmbhatt created an elaborate balance sheet of assets that existed only on paper,” lawyers for the lenders alleged.

Brahmbhatt’s companies declared bankruptcy in August, and he personally filed for Chapter 11 protection, which allows a business to reorganise and continue operating under court supervision.

BlackRock has reportedly told investors that Brahmbhatt is believed to be in India. His lawyer has denied all fraud allegations.