Indian-Origin CEO Accused in $500 Million US Fraud Case Involving BlackRock and BNP Paribas

A major financial controversy has erupted in the United States involving an alleged $500 million (approximately Rs 4,000 crore) fraud linked to an Indian-origin entrepreneur, Bankim Brahmbhatt. Brahmbhatt, the CEO of US-based companies Broadband Telecom and Bridgevoice, is at the center of serious allegations raised by some of the biggest names in global finance.

The Case
According to a report by The Wall Street Journal (WSJ), a unit of global investment giant BlackRock Inc. and several major lenders have accused Brahmbhatt’s firms of defaulting on loans worth over $500 million. The lenders filed a lawsuit in August, seeking to recover the massive sum from Brahmbhatt’s companies.

BNP Paribas Also Linked to the Deal
Sources familiar with the case told WSJ that French banking major BNP Paribas was involved in structuring the deal. The bank reportedly assisted BlackRock’s subsidiary, HPS Investment Partners, in arranging Brahmbhatt’s debt financing. However, BNP Paribas has not issued any public comment on the matter so far.

How the Dispute Began
The controversy revolves around asset-based financing — a lending system in which companies borrow money by pledging business revenues, customer receivables, or equipment as collateral. While this method is generally considered secure, the sector’s rapid expansion in recent years has led to an increase in fraud-related cases and defaults.

Brahmbhatt’s Defense
Bankim Brahmbhatt has strongly refuted the allegations, maintaining that the issue is a business disagreement rather than a case of fraud or deliberate misconduct. His legal team insists that the matter has been misrepresented and awaits the court’s verdict as the investigation continues in the US.

Why This Case Matters
The case has drawn widespread attention because it involves some of the world’s most powerful financial institutions — BlackRock and BNP Paribas — alongside an Indian-origin CEO. It also exposes growing concerns about regulatory oversight in certain segments of the US debt market, which until now have largely operated beyond strict supervision.