California Man Faces Charges in $100 Million Bank Fraud Scheme

Mahender Makhijani of Newport Beach faces criminal charges for defrauding Western Alliance Bancorp of nearly $100 million. Accused of inflating collateral value through falsified title insurance policies, he was previously associated with a lawsuit against his company. Prosecutors claim no financial loss incurred by Western Alliance due to potential guarantor recovery.

In a significant legal development, Mahender Makhijani, a resident of Newport Beach, California, has been charged with defrauding Western Alliance Bancorp to the tune of almost $100 million. The alleged scheme involved falsifying title insurance policies to exaggerate the value of collateral used to secure loans.

First Assistant U.S. Attorney Bill Essayli made the announcement in Los Angeles, revealing that the case ties into a prior civil lawsuit Western Alliance filed against Makhijani's firm, Cantor Group V, claiming unpaid debts amounting to $98.6 million. Despite the serious allegations, neither Makhijani's representative nor the defendant firm has responded to requests for comments.

Prosecutors assert the fraud involved using Adobe software to fake documents, misleading Western Alliance about the true financial state of the collateral. Despite the fraud, the bank has not suffered a financial hit, as it may recoup the funds through other means. Cantor denies any wrongdoing in the case.