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Introduction
In a remarkable twist of the private-credit markets, BlackRock, Inc.’s private-credit arm and other major lenders allege that Bankim Brahmbhatt, an Indian-origin telecom executive, orchestrated a fraud exceeding US$500 million. The alleged scheme centres on fabricated invoices and bogus receivables that formed the basis of massive loans secured against assets that apparently did not exist.
This article outlines who Brahmbhatt is, how the alleged fraud worked, what the ramifications are for BlackRock and the broader private-credit space, and where things stand now.
Who is Bankim Brahmbhatt
Brahmbhatt built his career in the telecom-services industry. He founded or controlled companies such as Broadband Telecom and Bridgevoice, operating in the U.S., Europe and Asia, working as an intermediary in wholesale voice/data traffic between carriers.
He maintained an office in Garden City, New York, and also headed financing vehicles such as Carriox Capital II and BB Capital SPV.
Until recently he was seen as a successful non-resident Indian (NRI) businessman in the telecom space—but the allegations now suggest far deeper problems.
How the alleged fraud worked
The financing structure
The scheme appears to have centred on asset-based financing, where borrowers pledge receivables (future payments from customers) or other business assets as collateral.
In this case, Brahmbhatt’s companies allegedly claimed to have large receivables from major global telecom operators (such as BICS SA, Telecom Italia Sparkle S.p.A. etc) and used these to secure loans from credit funds backed by BlackRock’s -affiliated firm HPS Investment Partners.
The deception
Investigators allege a multi-year orchestrated deception:
• Fake invoices, forged contracts and emails from domains mimicking legitimate telecom companies.
• Every email address provided to verify invoices over a span of two years was found to be fabricated, according to court documents.
• At least one alleged “customer” (BICS) confirmed in writing that they had no dealings with the Bridgevoice entity, calling the attempt “a confirmed fraud attempt”.
• Assets that were pledged as collateral were reportedly transferred offshore (India & Mauritius) to avoid detection.
The timeline
• HPS began lending to Brahmbhatt-linked firms circa September 2020.
• Exposure reportedly grew from roughly US$385 million in early 2021 to about US$430 million by August 2024.
• The collapse began to unravel in July 2024 (in some reports July 2025) when an employee detected irregularities in customer email addresses.
• Brahmbhatt’s companies (Broadband Telecom, Bridgevoice, Carriox Capital II, BB Capital SPV) filed for Chapter 11/bankruptcy in August 2024; Brahmbhatt also reportedly filed personal bankruptcy on 12 August 2024.
Why this matters & wider implications
For BlackRock / HPS and lenders
• The fraud exposes the risks inherent in private-credit deals that rely on collateralised receivables and projected revenue streams rather than traditional assets.
• While the total assets managed by BlackRock are enormous, a loss of over US$500 million is non-trivial and may shake confidence in due diligence practices.
• Co-financiers such as BNP Paribas SA are reported to have incurred large provisions (e.g., US$220 million) linked to the case, raising questions about risk-sharing and underwriting in such credit deals.
For the broader market
• The case underscores a warning: when a business model is heavily dependent on future receivables or “paper” assets, there is increased fraud risk, especially in less-transparent sectors (here telecom inter-carrier services).
• It may trigger stricter scrutiny on audits, verification of customer contracts and receivables, and the domains of “shadow credit” beyond traditional banking.
• Regulators and investors may demand higher transparency and audit robustness for asset-based lending structures.
Where things stand now
• Brahmbhatt is currently under investigation by his creditors; his whereabouts are unclear—some reports suggest he may be in India or Mauritius.
• The lawsuit was filed in August (U.S.) by HPS and other lenders naming Brahmbhatt and affiliated entities.
• Recovery efforts continue, but the complexity of offshore asset transfers and bankruptcy filings may limit recoverability.
• The reputational damage is real — for Brahmbhatt personally and for the lenders engaged in such financing structures.
Lessons learned
• Due diligence matters: Relying solely on customer-provided data, without independent verification of contracts and emails, may lead to blind spots.
• Collateral quality is key: Pledging receivables (especially future receivables) is riskier than tangible assets; lenders and auditors must probe the authenticity of the revenue streams.
• Transparency and audit trail: Fake domains, forged contracts and phantom customers are red flags; auditors must cross-check directly with supposed customers.
• Offshore asset transfers complicate recoveries: When assets move abroad or via complex entity structures, recovering funds becomes challenging.
• Private credit growth may have hidden risks: As institutional investors expand into private credit, they may face asymmetric risks—rare but large losses.
Conclusion
The Brahmbhatt-BlackRock matter is a wake-up call: even major institutions with significant sophistication can fall prey to well-orchestrated fraudulent schemes. The allegations—if proven—describe a “breathtaking fraud” on a scale that even the largest asset managers cannot ignore. For Brahmbhatt, the allegations paint the picture of a long-standing scheme built on paper, email domains and phantom contracts. For the credit market, it is a cautionary tale about the dangers of believing the story without digging deep.
Attached is a news article regarding bankim Brahmbhatt Scams blackrock for 500 million
Article written and configured by Christopher Stanley
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