BlackRock’s private credit division has reportedly lost over $500 million in a massive fraud by Indian businessman Bankim Brahmbhatt. Brahmbhatt, a U.S.-based telecom entrepreneur, heads Broadband Telecom and Bridgevoice. He is accused of creating fake customer accounts and falsified receivables to secure multimillion-dollar loans from U.S. lenders.
Court filings from August allege that Brahmbhatt pledged non-existent revenue streams as collateral. His companies have filed for Chapter 11 bankruptcy, reportedly owing more than $500 million to creditors. HPS Investment Partners, BlackRock’s private-credit arm, is now working to recover the lost funds after what insiders describe as a “breathtaking” deception.
The fraudulent loans were reportedly financed with support from BNP Paribas, which collaborated with HPS to fund Brahmbhatt’s telecom operations. HPS first extended financing in September 2020, and exposure reached $430 million by August 2024. Sources indicate BNP Paribas covered nearly half of these loans through HPS-managed credit funds.
Investigations suggest that Brahmbhatt’s firms diverted loan proceeds to offshore accounts in India and Mauritius. The first warning signs appeared in July 2025, when HPS employees noticed suspicious email addresses linked to fake clients. Brahmbhatt denied wrongdoing but soon stopped communicating.
Authorities later found his New York office empty, and his Garden City residence deserted, though luxury cars remained outside. Reports claim he may have fled to India, although his attorney denies these allegations.
Brahmbhatt is the founder of Bankai Group, a telecom conglomerate with over three decades of industry experience. His companies provided network infrastructure and services to international carriers. Amid the ongoing investigation, Brahmbhatt has deleted his LinkedIn profile, raising questions about his current location and intentions.
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This case has drawn attention to BlackRock’s risk exposure and the growing need for strict oversight in private credit financing.
