Fraud Friday: Federal Agents Arrest SoCal Real Estate Investor in $100 Million Bank Loan Fraud

June 12, 2026

Bob Coleman
Founder & Publisher

Back in November, Fraud Friday reported on lawsuits filed by Western Alliance Bank and Zions Bank seeking to recover more than $160 million in losses from Mahender Makhijani, a Newport Beach, California, real estate investor.

This week, the U.S. Department of Justice filed criminal bank fraud charges against Makhijani.
According to federal prosecutors, Makhijani defrauded federally insured banks of nearly $100 million by providing altered title insurance documents that falsely represented the banks’ collateral positions on loans pledged under a lending facility.

The DOJ alleges that from September 2024 through April 2025, Makhijani altered title insurance policies to make it appear lenders held first-priority liens on collateral loans when, in fact, other liens had priority.

Federal prosecutors allege the altered policies were submitted to support a lending facility approaching $100 million. The bank relied on those documents when advancing funds.

The Feds say the bank would have declared a default and demanded immediate repayment had it known the collateral’s true status.

Makhijani was arrested in an early morning raid on June 10 at his Corona del Mar residence.

“Today’s arrest highlights the strength of the IRS Criminal Investigation’s financial expertise. As alleged, Mr. Makhijani falsified title insurance records, concealed true lien positions, and used a network of shell companies to mislead a federally insured bank out of nearly $100 million,” says Darren Lian, Acting Special Agent in Charge, IRS Criminal Investigation’s Los Angeles Field Office. “Our special agents followed the money through layered transfers and disguised accounts, uncovering a scheme designed to deceive at every turn. When individuals manipulate documents and abuse financial systems for personal gain, IRS CI will expose the truth and ensure they are held accountable.”

Source: June 8, 2026 Criminal Complaint, USA v Mahender Makhijani