NRI PULSE STAFF REPORT
Corona del Mar, CA, June 11, 2026: Federal authorities have arrested California businessman Mahender Makhijani, accusing him of orchestrating a scheme that allegedly defrauded a bank out of nearly $100 million by manipulating real estate collateral documents.
Makhijani, 44, of Corona del Mar, California, was arrested on June 10 and charged with bank fraud in a criminal complaint filed in federal court in Santa Ana. If convicted, he faces a maximum sentence of 30 years in prison.
According to the U.S. Attorney’s Office for the Central District of California, Makhijani allegedly falsified title insurance records and concealed the true lien positions on real estate-backed loans pledged as collateral to a federally insured bank. Prosecutors contend that the altered documents made the collateral appear significantly more valuable than it actually was.
The criminal case centers on Newport Beach-based Cantor Group V LLC, a lending company controlled by Makhijani. Federal investigators allege that the company secured approximately $100 million in financing from Arizona-based Western Alliance Bank in 2024 to originate and acquire real estate-backed loans. Prosecutors say Makhijani used Adobe software to create title policies falsely showing Cantor Group V held first-priority liens on certain properties when other creditors actually had superior claims.
Authorities argue that had the bank known the true status of the collateral, it would have declared the loans in default and demanded immediate repayment. The complaint alleges that the scheme exposed the bank to losses approaching $100 million.
The criminal charges follow a civil lawsuit filed by Western Alliance Bank in August 2025 seeking approximately $98.6 million from Cantor Group V. In court filings, the company denied allegations that it had committed fraud or submitted altered title documents.
The arrest is the latest development in a series of legal disputes involving Makhijani and his real estate ventures. Last month, an arbitrator awarded approximately $1.34 billion to Laguna Beach developer Mohammad Honarkar, finding that Honarkar had been fraudulently induced into business dealings involving Makhijani and affiliated entities. Makhijani has disputed allegations in related civil proceedings.
Some media reports citing court filings and witness statements have also highlighted allegations involving employee intimidation, blackmail, and lavish private parties. However, those claims are not part of the federal bank fraud charge and remain unproven allegations.
Federal investigators from IRS Criminal Investigation and the FBI are continuing to examine the case. Makhijani made his initial court appearance in Santa Ana following his arrest.
Mahender Makhijani arrested in California in its million dollar home for bank fraud. Indian born US resident’s dream run ends. He is accused of swindling $100 million from banks by doctoring documents. pic.twitter.com/SO3rIiGeTu
— Smita Prakash (@smitaprakash) June 11, 2026
