BlackRock and other lenders are pursuing over $500 million in claims against Bankim Brahmbhatt, an Indian-origin CEO, for alleged fraud involving his telecom companies, Broadband Telecom and Bridgevoice. The lenders filed a lawsuit in August, accusing Brahmbhatt of fabricating accounts receivable that were used as collateral for loans. Reports indicate that discrepancies were discovered during an internal check, leading to suspicions of fraud.

Brahmbhatt's companies reportedly owe more than $500 million, and the lawsuit claims he created fake email domains and customer lists dating back to 2018. The lenders allege that he transferred assets meant as collateral to offshore accounts in India and Mauritius.

BlackRock's private credit arm, HPS Investment Partners, began lending to Brahmbhatt's companies in September 2020, increasing its investment to approximately $430 million by August 2024. Concerns arose when an HPS employee noticed irregularities with email addresses linked to Brahmbhatt's companies, which appeared to be fake. After initially reassuring HPS about the situation, Brahmbhatt ceased communication.

Following the lawsuit, Brahmbhatt's companies filed for bankruptcy in August. Attempts to reach him at his residence in Garden City, New York, were unsuccessful, with reports indicating that his office was locked and vacant. HPS has suggested that Brahmbhatt may have left for India.

Despite the serious allegations, Brahmbhatt's lawyer has denied any wrongdoing, stating that the claims are unfounded. The situation has raised concerns about the integrity of private credit deals, as lenders seek to recover their investments amid growing scrutiny in the sector.