In one of the largest corporate frauds of 2025, the BlackRock loan scam involving $500 million has shaken global financial circles. The scheme, which surfaced in mid-2025, targeted lenders including BlackRock’s HPS Investment Partners and BNP Paribas, exposing vulnerabilities in the rapidly growing private-credit market. At the center of the scandal is Bankim Brahmbhatt, an Indian-origin telecom entrepreneur based in the United States, who allegedly used fabricated invoices, fake customer contracts, and manipulated communications to secure hundreds of millions of dollars in loans. The case has since triggered lawsuits, bankruptcies, and international investigations involving regulators in both the United States and India.
The story began with what appeared to be a normal asset-based lending operation. Under this model, companies borrow money using their accounts receivable as collateral. For several years, Brahmbhatt’s firms claimed major clients such as AT&T and Verizon, presenting fake invoices and emails that appeared authentic to auditors. These false records gave lenders the impression that the companies were thriving, allowing them to access increasing amounts of capital. What started as a $100 million loan in 2020 soon expanded into a massive $500 million exposure by 2024, forming the core of the BlackRock loan scam.
Court filings and financial documents show that the fraud began to unravel during a routine audit in July 2024. Auditors at HPS discovered inconsistencies in the verification emails and noticed that the domain names used for supposed customer communications were slightly altered versions of real corporate addresses. Once this was discovered, a deeper investigation revealed that nearly all customer confirmations over the previous two years were fabricated.
The deception relied on an intricate network of shell companies and falsified contracts. Brahmbhatt’s primary entities, Broadband Telecom, Bridgevoice, Carriox Capital II, and BB Capital SPV, presented themselves as legitimate telecom operators and financing platforms. However, forensic accountants later found these entities were interconnected, sharing management and routing funds to offshore accounts in India and Mauritius. By August 2024, the fraud’s scale had become undeniable, leading to bankruptcy filings for all four companies. Brahmbhatt himself filed for personal bankruptcy shortly thereafter.
Understanding the mechanics of the scam highlights the risks in the private-credit market. Unlike traditional bank loans, private-credit deals are often arranged quickly and rely heavily on borrower-provided documentation. This makes them vulnerable to manipulation, especially when a borrower can convincingly falsify invoices or customer relationships. Experts have warned that the speed and competition in private lending can encourage shortcuts in verification. In this BlackRock loan scam, lenders trusted Brahmbhatt’s firms and failed to detect the fabricated collateral until it was too late.
The timeline of the fraud shows gradual expansion. Initial loans worth around $100 million were approved in 2020 by HPS Investment Partners, later acquired by BlackRock in 2025. Encouraged by apparent business success, lenders extended credit further. By 2021, the total reached $385 million, and by 2024, over $430 million. BNP Paribas was the second major lender involved, with approximately $220 million exposure. The scheme went undetected until the July 2024 audit exposed forged documentation, and lawsuits followed in August 2024 in New York federal court seeking repayment and asset freezes.
Bankim Brahmbhatt, the primary suspect, is described as a quiet but ambitious businessman. Originally from Gujarat, India, he migrated to the United States and built a career in telecom and finance. Through Broadband Telecom and Bridgevoice, he positioned himself as a global service provider. Carriox Capital II allowed him to offer invoice financing to other telecom businesses, helping gain credibility among investors. The scam’s exposure led to the closure of his New York office, the deletion of his LinkedIn profile, and his current whereabouts remain unknown.
Lawyers representing Brahmbhatt have denied all allegations, claiming financial pressures caused the bankruptcies rather than fraud. Despite this, forensic experts hired by HPS uncovered deliberate deception, including fake websites, forged customer emails, and offshore shell transactions. Authorities are now tracing funds, many suspected to have been moved to India and Mauritius.
The financial fallout has been severe. HPS Investment Partners, now under BlackRock, has admitted exposure around $430 million, while BNP Paribas reportedly set aside €190 million in loss provisions. The total outstanding amount exceeds $500 million, making this one of the largest private-credit frauds in recent history. The BlackRock loan scam has prompted questions about oversight in the $1.7 trillion private-credit sector globally.
In October 2025, The Wall Street Journal reported new investigation details. Belgian telecom company BICS confirmed its name and emails were used in forged documents, calling it a “confirmed fraud attempt.” The US Department of Justice and FBI are involved, while Indian agencies like the Enforcement Directorate (ED) and Central Bureau of Investigation (CBI) assist under the Mutual Legal Assistance Treaty. Brahmbhatt may have fled to India, and extradition proceedings could follow if criminal charges are filed.
