American investment firm BlackRock has reportedly fallen victim to a major scam exceeding $500 million (approximately ₹4,200 crore). The company alleges that Indian-origin CEO Bankim Brahmbhatt orchestrated this fraud through his telecom company.
World News: A major financial scandal has been uncovered in the US, with Indian-origin CEO Bankim Brahmbhatt accused of defrauding over $500 million (approximately ₹4,200 crore). This case involves BlackRock, a leading American investment firm, and its private credit arm, HPS Investment Partners.
According to reports, BlackRock's affiliate HPS had made substantial investments in Brahmbhatt's telecom company. It is alleged that Brahmbhatt orchestrated a large-scale financial fraud using fictitious accounts, fake email addresses, and bankrupt companies. The case has now reached a US court, and the police are investigating.
How Did the Case Begin?
BlackRock's private credit unit, HPS, entered into an investment deal with Bankim Brahmbhatt's telecom company in September 2020. Initially, $385 million was invested, which was later increased to $430 million by August 2024. The objective of this investment was to expand telecom infrastructure.
However, in July 2025, HPS became aware of some suspicious emails and financial documents. The company's investigation revealed that many email addresses were fake, and the clients mentioned in these documents did not genuinely exist. When this was brought to Brahmbhatt's attention, he assured HPS that everything was in order and an investigation was underway. However, shortly thereafter, he stopped responding to the company's calls and emails.
Company Office Closed, CEO Disappeared
When HPS officials visited Brahmbhatt's company office in New York, they found it closed. No employees were present in the office, and locals informed them that the company had been shut for months. According to reports, the company was bankrupt, but investors had not been informed. Later investigations also revealed that Brahmbhatt had misled investors with the help of the company's fake accounts and documents.
According to a Wall Street Journal report, when investigative agencies raided Brahmbhatt's home in Garden City, New York, he was missing. It is believed that he is in India.
Where Did the Investment Money Go?
HPS claims that most of the invested amount was transferred to companies in India and Mauritius. It is alleged that the balance sheets and financial reports Brahmbhatt prepared for investors were entirely fraudulent. The company states that this was a “breathtaking fraud,” involving large-scale use of fictitious accounts and bogus transactions.
