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BlackRock-Backed Lenders Pursue Recovery in Alleged $500 Million Receivables Fraud

External reviews reported fake customer emails alongside forged contracts, intensifying the bankruptcy fight.

Overview

  • HPS Investment Partners began lending to Brahmbhatt-linked vehicles in 2020, lifting exposure to about $430 million by August 2024, with BNP Paribas financing nearly half.
  • In July 2025, irregular customer email domains triggered checks by Deloitte, CBIZ and Quinn Emanuel, and Belgian telecom BICS told investigators the referenced emails were fraudulent.
  • Lenders sued in August alleging fabricated invoices and receivables pledged as collateral, plus transfers of pledged assets to accounts in India and Mauritius.
  • Brahmbhatt’s firms entered Chapter 11 on August 12 and he filed personal bankruptcy the same day, with Carriox Capital II and BB Capital SPV later joining the cases; his lawyer denies the fraud claims.
  • An HPS visit found listed New York offices locked and vacant as lenders told clients they believe he is in India, while BNP Paribas booked a €190 million provision for a “specific credit situation” without naming the borrower.