Indian-origin telecom entrepreneur Bankim Brahmbhatt is allegedly involved in a $500 million loan fraud in the US, affecting major lenders such as BlackRock’s private credit division and BNP Paribas.
Brahmbhatt, the founder of Broadband Telecom and Bridgevoice, is alleged to have fabricated customer invoices, accounts receivable, email addresses, and contracts to obtain large loans. He is now suspected of having fled the US after the scheme was exposed.
The Wall Street Journal was the first to report this deception when an HPS employee noticed suspicious customer emails from fake domains that imitated well-known telecom companies, such as T-Mobile and Telstra.
HPS started lending to Brahmbhatt’s financing arm in September 2020, reaching $430 million by August 2024. BNP Paribas is responsible for about half of the total exposure. In July, Brahmbhatt reportedly dismissed concerns before proceeding incommunicado.
Months later, Broadband Telecom, Bridgevoice, related entities Carriox Capital II and BB Capital SPV, and Brahmbhatt filed for Chapter 11 bankruptcy on August 12 in the US Bankruptcy Court for the Eastern District of New York. Court documents confirm debts exceeding $500M, mainly owed to HPS and BNP Paribas.
HPS representatives found Brahmbhatt’s locked, empty office in Garden City, Long Island. A nearby office employee told WSJ she hadn’t seen anyone there recently. Authorities suspect he escaped to India, and lenders believe he moved assets to accounts in India and Mauritius.
While a write-off would be trivial for Blackrock, managing $13.5 trillion, the scandal exposed weaknesses in the $1.7 trillion private credit boom, which now involves faster deals, less oversight, and reliance on borrower data. Experts warn of a “cockroach effect,” a term from Mohamed El-Erian, implying hidden fraud risks from lax, unregulated lending.
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For HPS, BNP, and investors, recovering part of the half-billion dollars now requires an international effort, including lawsuits in India and Mauritius, as well as legal action to freeze offshore funds.
