Another Bear Stearns Moment?

[k1976]

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Credit Fraud Fears Loom After BlackRock’s HPS Zeros Out Bad Loan​

The Blackrock headquarters in New York.Photographer: Michael Nagle/Bloomberg
By Davide Scigliuzzo, Dorothy Ma, Chris Dolmetsch, and Silla Brush
November 1, 2025 at 6:30 AM PDT
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Takeaways by Bloomberg AI​

The ink was barely dry on BlackRock Inc.’s $12 billion acquisition of HPS Investment Partnerswhen executives at the private credit giant realized one of their investments had gone horribly wrong.

HPS had teamed up with BNP Paribas SA to provide hundreds of millions of dollars to a group of companies run by little-known businessman Bankim Brahmbhatt, according to people with knowledge of the matter. HPS had taken the riskiest portion of the financing — which was purportedly backed by receivables from some of the world’s biggest telecommunications providers — eyeing double-digit returns, said the people, who asked not to be identified citing private information.

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[k1976]

The $500 Million Question: How a missing Indian-origin CEO tricked BlackRock for four years​

Agencies
Synopsis

BlackRock's investment arm is reportedly caught in a massive financial scandal. Bankim Brahmbhatt, CEO of Broadband Telecom and Bridgevoice, is accused of creating fake invoices and customer accounts. This deception allegedly left his companies owing over $500 million. Brahmbhatt has reportedly disappeared, and his companies have filed for bankruptcy. Lenders claim assets were transferred offshore. Investigations are ongoing.​

By ET Online
Last Updated: Nov 01, 2025, 04:14:00 PM IST

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American investment powerhouse BlackRock is reported to have been ensnared in a massive financial scandal worth hundreds of millions of dollars — a fraud allegedly masterminded by Bankim Brahmbhatt, the Indian-origin CEO of Broadband Telecom and Bridgevoice, both US-based telecom firms.

 

[k1976]

According to The Wall Street Journal, lenders have accused Brahmbhatt of fabricating accounts receivable to use as collateral for loans. The alleged deception has left his companies owing more than $500 million. Brahmbhatt’s lawyer, however, told the Journal that the CEO disputes all allegations of fraud.

Red flags & radio silence​

The trouble began when HPS, the private credit investment arm of BlackRock, which started lending to Brahmbhatt’s companies in September 2020, gradually raised its exposure to the telecom venture — first to $385 million in early 2021, and later to around $430 million by August 2024.

 

[k1976]

In July this year, an HPS employee noticed suspicious email domains that appeared to mimic legitimate telecom companies, triggering internal alarm. When confronted, Brahmbhatt reportedly brushed off the concerns, insisting there was nothing to worry about. Soon after, he stopped answering calls altogether.

The Journal n HPS representative later visited the New York offices of Brahmbhatt’s firms — only to find the premises shut down. Within weeks, the telecom companies filed for bankruptcy.

 

[k1976]

The vanishing act​

Adding to the mystery, Brahmbhatt himself has seemingly disappeared.

According to the news report, when its journalists visited his Garden City, New York residence, no one answered the door — though two BMWs, a Porsche, a Tesla, and an Audi sat parked in the driveway. A dust-covered package lingered by the entrance.

HPS has reportedly told clients they believe Brahmbhatt is in India, though his exact whereabouts remain unclear. “Calls to Brahmbhatt’s lawyer seeking comment on his client’s whereabouts weren’t immediately returned,” the Journal added.

 

[k1976]

The case builds​

In August, lenders filed a lawsuit alleging a systematic deception that spanned years. They claim that every customer email provided by Brahmbhatt’s companies turned out to be fake.

Brahmbhatt created an elaborate balance sheet of assets that existed only on paper,” lawyers for the lenders wrote, according to the WSJ . The complaint also alleges that assets meant as loan collateral were secretly transferred to offshore accounts in India and Mauritius.

As investigations unfold, what began as a promising telecom investment has morphed into a multi-million-dollar financial thriller, leaving one of Wall Street’s biggest firms — and its investors — searching for answers.

 

[k1976]

 

[syed putra]

Its normally its the jews who wins.

 

[Loofydralb]

Brahmbhatt is dead. You don't take money from the zionazi without consequences. If they can do to the children of palestine those atrocities, what more will they do to Brahmbhatt.