United States: Indian-origin businessman Bankim Brahmbhatt has been accused of a $500 million fraud in the US, in which many investors, including BlackRock, are suffering losses. Brahmbhatt is accused of taking loans through fake finance and bills, although he has denied all the allegations.
What are the allegations?
According to the report, Brahmbhatt is accused of obtaining loans on the understructure of fake bills and consumer finance of his companies. He had shown these fake bills as collateral for the loan. However, Brahmbhatt has denied these allegations.
Who is Bankim Brahmbhatt?
Bankim Brahmbhatt is the owner of two companies named Broadband Telecom and Bridgevoice, which together are part of the Bankai Group. This group describes itself as an international telecom service provider. According to Bankai Group's website, it provides infrastructure and connectivity services to telecom companies virtually the world.
Earlier Brahmbhatt had offices in Garden City, New York, America, but now these offices have reportedly been found closed. The office was locked and appeared empty when an investor representative visited in July, The Wall Street Journal reported.
How did the debt trap happen?
According to the report, Brahmbhatt raised a huge value from investors through financial vehicles like Carriox Capital and BB Capital SPV. This included a visitor named HPS Investment Partners, which was recently purchased by BlackRock. It is so-called that Brahmbhatt made fake consumer invoices and took loans by mortgaging them.
The lenders requirement that the investigation revealed that every consumer email and contract they provided over the past two years was fraudulent, some of which stage when as far as 2018. The report quoted sources as saying that Brahmbhatt is currently in India. Several luxury cars—like BMW, Porsche, Tesla, and Audi—were found parked outside his US home, but the house was found locked.
Companies bankrupt, specimen in court
In August, Brahmbhatt's companies filed for bankruptcy. After them, Carriox Capital II and BB Capital SPV moreover took the same step. On August 12, Brahmbhatt himself moreover filed personal bankruptcy.
The lenders have personal in magistrate that Brahmbhatt prepared “a fake wastefulness sheet on paper” in which the resources were created just for show. He moreover tangibly transferred these resources to finance in India and Mauritius.
What did the lawyer say
Brahmbhatt's lawyer has said that all the allegations made versus his vendee are false and baseless. He moreover widow that the unshortened matter is still in the judicial process.
