Orange County Financier Arrested in Alleged $100 Million Bank Fraud Scheme Involving Forged Real Estate Titles

In a dramatic early-morning raid, federal agents arrested Mahender Makhijani, a 44-year-old lawful permanent resident from India living in the exclusive Corona del Mar neighborhood of Newport Beach, on charges of bank fraud. Authorities allege he defrauded a federally insured bank of nearly $100 million by falsifying title insurance policies and concealing senior liens on real estate collateral.

Makhijani, who controlled Cantor Group V LLC, a Newport Beach-based firm, allegedly orchestrated the scheme between September 2024 and April 2025. Under the lending agreement, Cantor was required to pledge only first-lien real estate loans as collateral. Instead, prosecutors say Makhijani or an associate edited legitimate title policies using Adobe software, altered or removed metadata, printed and re-scanned the documents to make them appear authentic, and submitted them to the bank.

"First in time, first in right" - a basic principle of real estate law - was allegedly turned on its head through these forgeries. The bank relied on the falsified documents, along with misleading explanations provided during phone calls and in a December 2024 spreadsheet, to advance nearly $100 million. Had the true subordinate lien positions been known, the bank would have declared a default and demanded immediate repayment.

First Assistant U.S. Attorney Bill Essayli announced the arrest, stating, "When criminals are allowed to deceive lenders, the spillover effects can harm consumers and businesses. Today's arrest highlights our office's continued determination to combat threats to our nation's banking system."

The case comes on the heels of a massive May 2026 arbitration award of approximately **$1.34 billion** against Makhijani and related entities in a separate real estate dispute with Laguna Beach businessman Mohammad Honarkar. That ruling found fraud, breach of agreements, and other misconduct involving financing for hotels, apartment complexes, and commercial properties across Orange County and beyond.

Reports describe Makhijani's lifestyle as lavish, funded in part by the alleged fraud: private jets, a fleet of supercars including Bentley, Porsche, and Mercedes G-Wagon models, multiple mansions, and high-end parties. Court documents note his use of shell companies and efforts to obscure assets.

Makhijani is expected to make his initial appearance this afternoon in U.S. District Court in Santa Ana. He faces a maximum of 30 years in federal prison if convicted. All defendants are presumed innocent until proven guilty.

The investigation involves IRS Criminal Investigation, the FBI, FDIC-OIG, and other agencies. A related civil lawsuit was filed by the bank in Los Angeles Superior Court in August 2025.

This case raises questions about due diligence in commercial real estate lending, especially in Orange County's competitive market. While titles and liens are public records, sophisticated document forgery apparently allowed the scheme to continue for months before detection.

The Santa Monica Observer will continue to follow developments in this high-profile financial fraud case with ties to Southern California's real estate sector.