BlackRock’s HPS Among Lenders Suing Telecom Exec for Alleged $500M Fraud

The Federal Bureau of Investigation has opened a criminal investigation into the August 2025 lawsuit filed in New York Supreme Court against telecommunications executive Bankim Brahmbhatt. The suit alleges Brahmbhatt orchestrated a widespread and “breathtaking” fraud scheme to obtain hundreds of millions of dollars in loans.

The core of the suit centers on asset-based finance, where debt is secured by pledging future revenue streams from specific operations or receivables as collateral.

The summer 2025 complaint was filed by Alter Domus (US) LLC, acting as the collateral agent for a group of lenders. The group included BlackRock’s HPS Investment Partners, which, according to third-party reporting, began lending to a Brahmbhatt-controlled entity in 2020.

The lenders accuse the Broadband Telecom and Bridgevoice owner of fabricating accounts receivable that were supposed to be used as loan collateral. They seek to recover the full amount due under the applicable credit agreement, which they state exceeds $500 million.

Alter Domus alleges that “many, if not all,” of the pledged receivables were non-existent. The complaint alleges the fraud dates back to at least 2018 and involved an elaborate scheme to create the illusion of legitimate assets. The scheme included the following elements:

• Forged contracts: The complaint references contracts with telecommunication companies (including Telecom Italia Sparkle, BICS, Telstra, and Taiwan Mobile) that contained signatures the lenders do not believe are legitimate. Brahmbhatt himself personally signed at least one of these contracts.
• Fake emails and domains: The lenders reviewed email messages purporting to confirm over $26 million in receivables that were sent from fake internet domains designed to mimic legitimate telecommunication companies, such as “belgacomics.com” instead of BICS’s actual domain, “bics.com.” A Belgian telecommunications company confirmed this as a “confirmed fraud attempt.”
• Continued deception: Even after being confronted, Brahmbhatt and his affiliates allegedly provided additional fabricated email messages to the lenders’ auditor in July 2025 in an attempt to cover up prior deceptions.

The lawsuit further alleges the continuation of fraud through fund diversion. A credit party allegedly transferred $1.8 million of loan proceeds to Bankai International Pvt Ltd in Mauritius and another transferred $3 million to Bankai Infotech Ltd. in India, both foreign entities controlled by Brahmbhatt and collectively referred to as credit parties. According to the lawsuit, the credit parties used new loan borrowings to pay monthly interest due on prior loans, a practice Alter Domus likened to a “one-victim Ponzi scheme.”

When caught, according to the lawsuit, Brahmbhatt refused to cooperate with Alter Domus’s and the lenders’ efforts to recover funds. That refusal triggered his personal liability under the Bad Acts Guaranty, meaning that Brahmbhatt now owes the full amount due under the credit agreement.

The lenders are seeking judgment for the full debt amount, along with a request for an order of attachment against Brahmbhatt’s assets, including bank accounts, real property, equity interests, and digital currency wallets. Brahmbhatt is alleged to reside in New York.

The asset-based finance segment has experienced substantial growth, mirroring the expansion of the wider private credit industry. The Brahmbhatt incident may be a significant flashpoint, signaling that investors in the space could face greater potential losses than previously anticipated.

Click here to visit the AltsWire directory page.