Federal authorities have arrested Mahender Makhijani, a 44-year-old Newport Beach businessman, on charges of orchestrating a $100 million bank fraud scheme involving forged real estate documents. According to the U.S. Attorney’s Office for the Central District of California, Makhijani allegedly manipulated property titles and financial records to secure loans under false pretenses. He now faces a maximum sentence of 30 years in federal prison if convicted of bank fraud.
How the Fraud Scheme Allegedly Operated
Makhijani, who operated a firm known as Cantor Group V LLC, reportedly entered into lending agreements that required the use of top-priority real estate loans as collateral. Federal prosecutors allege that between September 2024 and April 2025, Makhijani and a subordinate systematically bypassed these requirements.
According to the federal complaint, the pair utilized Adobe software to alter title insurance documents. By editing metadata and scanning forged records, they misled the lender into believing Cantor Group V held first-priority claims on properties when, in reality, other lenders held those rights. Prosecutors state that Makhijani further reinforced these deceptions through misleading spreadsheets and verbal misrepresentations during business calls.
Allegations of Intimidation and Misconduct
The criminal complaint filed in federal court details a pattern of behavior extending beyond financial document fraud. Witnesses told investigators that Makhijani maintained control over his subordinates through threats and intimidation. Court documents allege that he threatened to kill employees and vowed to put their families on the street or force their children onto welfare if they did not comply with his directives.
Beyond workplace intimidation, the complaint alleges that Makhijani hosted social gatherings involving drugs and sex workers. Prosecutors claim he recorded these events to use as leverage against attendees, effectively silencing potential whistleblowers through blackmail.
Financial Complexity and Legal Precedents
The investigation into Makhijani’s finances is ongoing, as federal agents have struggled to track the missing $100 million. While the suspect lived a life of documented luxury—owning a Bentley, a Porsche, and a Mercedes G-Wagon—prosecutors noted in the complaint that his assets are largely held in names other than his own, complicating recovery efforts.
This arrest follows a broader history of legal disputes involving Makhijani. In May 2024, an arbitrator awarded approximately $1.34 billion to local businessman Mohammad Honarkar in a civil case involving dozens of properties. The arbitrator found that Makhijani had breached contracts and engaged in fraudulent business practices.
Key Details of the Federal Case
- Defendant: Mahender Makhijani, 44, of Corona del Mar, California.
- Primary Charge: Bank fraud, carrying a statutory maximum of 30 years in federal prison.
- Alleged Methods: Metadata manipulation, document forgery, and the use of misleading financial disclosures to secure collateral-based loans.
- Status: Makhijani is scheduled for an initial appearance in federal court in Santa Ana.
The case remains under active investigation by federal authorities. Because the government has not yet accounted for the missing funds, the court has highlighted the difficulty of tracing the defendant’s complex network of shell companies and offshore-style financial arrangements.