Key facts
- California real estate investor Mahender Makhijani has been charged with bank fraud by U.S. authorities.
- The charges relate to an alleged scheme involving falsified documents for nearly $100 million in real estate-backed loans.
- Makhijani is accused of misrepresenting lien positions on properties used as collateral.
- The alleged fraud occurred between September 2024 and April 2025.
- Makhijani was arrested at his Newport Beach residence.
- He was previously found liable for over $1.3 billion in a separate fraud case.
A California real estate investor, Mahender Makhijani, has been criminally charged with bank fraud by U.S. authorities, marking the latest development in a series of credit concerns that have emerged from a portfolio of commercial properties. Makhijani, 44, is accused of falsifying documents to secure a loan, according to a statement from the U.S. attorney in Los Angeles.
The charges stem from Makhijani's control of Newport Beach-based Cantor Group V LLC, which had a lending relationship with an unnamed bank. Authorities allege that from September 2024 to April 2025, Makhijani falsified title insurance policies to falsely state that Cantor was in the first lien position for certain real estate collateral. In reality, other creditors reportedly held prior claims. Makhijani or an associate allegedly edited these documents and submitted them to the bank, which used the incorrect information for its lending decisions. Had the bank known the true situation, it would have considered Cantor in default and demanded immediate repayment of nearly $100 million.
Separately, Andrew Stupin, another California real estate investor, is facing lawsuits from Banc of California, Enterprise Bank & Trust, and Nano Banc, seeking to collect on loans totaling $108 million. Stupin is also listed as a guarantor on troubled debt amounting to approximately $270 million. PMF CA REIT has also sued Stupin for nearly $7 million.
These lawsuits have shed light on surprise disclosures made by Zions Bancorp and Western Alliance Bancorp regarding soured commercial loans. Zions disclosed it was suing guarantors of two Cantor Group funds to recover $60 million, while Western Alliance flagged a lawsuit against a different Cantor Group fund to recover nearly $100 million, alleging fraud by the borrower. Both banks alleged that investment funds tied to the Cantor Group misrepresented collateral pledged against real estate loans, primarily in California.
Makhijani was arrested at his Newport Beach mansion. He was recently found liable for fraud in a separate joint venture settlement exceeding $1.3 billion. An attorney for Stupin stated that the Western Alliance claims against his client were unfounded.