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BlackRock-Backed HPS, Lenders Sue Over $500 Million in Alleged Fake Receivables

The case has sharpened focus on opaque asset-backed lending during active court proceedings.

Overview

  • Lenders filed an August lawsuit claiming companies tied to telecom entrepreneur Bankim Brahmbhatt owe more than $500 million backed by fabricated receivables.
  • Brahmbhatt, whose firms include Broadband Telecom and Bridgevoice, denies the fraud allegations through his lawyer.
  • BNP Paribas helped finance the loans alongside HPS Investment Partners, with sources saying the bank funded nearly half the exposure through HPS credit funds.
  • HPS began lending in 2020 and expanded exposure to roughly $430 million by August 2024, with irregular emails and alleged fake domains surfacing during 2025 checks.
  • Brahmbhatt and affiliated companies filed for bankruptcy on August 12, reporters later found his New York office locked and vacant, and sources said HPS fears he may have left the U.S.