New Delhi: An Indian-origin businessman by the name of Bankim Brahmbhatt has come into the limelight of a huge financial fraud. He is a CEO of a US telecom company. Reportedly, he and his firms defrauded some of the largest investment firms worldwide, such as BlackRock, of $500 million dollars (₹4,000 Crore) .
Brahmbhatt, according to news reports, used his companies to borrow huge sums of money on a portfolio related to BlackRock known as HPS Investment Partners. His companies applied to have these loans, claiming that they had numerous customers to whom they were owed money.
These were the bogus customer payments that were presented as evidence that the company was performing well. However, the investigators discovered that the majority of such details were not factual later. The emails, invoices and contracts that were used to reflect the income of the company were fabricated.
The fraud is thought to have begun in 2020. In the years that followed, about 430 million dollars was contributed by the banks and investment organizations to the companies of Brahmbhatt. One of the primary banks was that of the BNP Paribas, which facilitated such loans. As lenders started getting suspicious of what the company was saying, they decided to visit their offices in New York and they found the offices locked and empty. Not long after that it was announced that Brahmbhatt had moved out of the United States.
Investigators also discovered that the money of the loans had been transferred to other countries such as India and Mauritius perhaps to conceal the money. The lenders have now resorted to court in an attempt to reclaim their money. In the US, India, and Mauritius, the case is under investigation.
This has been referred to by BlackRock and other lenders as a breathtaking fraud. Experts explain that this is the example of how easily people can fool large companies as long as they are not attentive to all the details.
Brahmbhatt Statement
However, Brahmbhatt has refuted the fraud claims and claims that the loans had been taken to do business and not to defraud anybody.
This case has appalled most business people and it is also to alert all the people that they should be frank and cautious with money.
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