Federal authorities have arrested a Newport Beach business executive accused of orchestrating a large-scale bank fraud scheme that allegedly cost a financial institution nearly $100 million. Prosecutors say the case involves falsified financial records and altered real estate documents used to secure loans over several months.
Arrest
The suspect, Mahender Makhijani, is a 44-year-old lawful permanent resident originally from India who lives in Corona del Mar, according to federal court records. He was taken into custody following the filing of a criminal complaint in federal court.
Makhijani is expected to make his initial appearance in U.S. District Court in Santa Ana, where he will face bank fraud charges. Federal authorities emphasized that the case remains in its early stages.
Allegations
According to prosecutors, Makhijani controlled Cantor Group V LLC, a Newport Beach-based company that had entered into a lending agreement with a bank. Under that agreement, the company was required to pledge only first-lien real estate loans as collateral for borrowed funds.
Investigators allege that from September 2024 through April 2025, Makhijani and a subordinate submitted falsified documentation to make it appear the company held first-priority liens on properties, even though other lenders allegedly held superior claims.
Court documents say the alleged scheme involved forging title insurance policies, altering electronic records, and providing misleading spreadsheets and explanations during communications with bank representatives. Prosecutors contend these actions allowed the company to continue drawing large sums of credit it was not entitled to receive.
Digital Evidence
Federal investigators say they identified the alleged fraud using advanced digital forensic techniques. When documents are altered using software such as Adobe, investigators can analyze metadata embedded within the files.
According to authorities, forensic analysts examined timestamps showing when documents were created or modified, software histories identifying the tools used to edit them, and author data tied to specific user accounts or devices. Investigators also compared cryptographic hash values, which can reveal when files have been altered or replaced.
Prosecutors say this analysis helped establish a timeline that conflicted with legitimate real estate transactions, raising concerns about the authenticity of the documents submitted to the bank.
Potential Penalties
If convicted, Makhijani could face a maximum sentence of up to 30 years in federal prison for bank fraud. Federal law does not allow parole, and sentencing can also include significant financial penalties, including restitution and asset forfeiture.
Prosecutors noted in court filings that large-scale bank fraud can have broader economic consequences, potentially affecting lenders, borrowers, and financial markets beyond the immediate parties involved.
Makhijani is presumed innocent unless and until proven guilty in court.
FAQs
Who was arrested in the bank fraud case?
Federal agents arrested Newport Beach executive Mahender Makhijani.
What is he accused of doing?
Prosecutors allege he falsified records to obtain large bank loans.
How much money was involved?
Authorities say the alleged fraud involved nearly $100 million.
How was the alleged fraud uncovered?
Investigators used digital forensic analysis of electronic documents.
What penalties could he face?
Up to 30 years in federal prison if convicted.
