BlackRock lost over $500 million to a loan fraud scheme led by telecom exec Bankim Brahmbhatt, involving fake invoices and fabricated clients.
WASHINGTON, D.C.: BlackRock, the world’s largest asset management firm, has reportedly lost more than $500 million in a massive loan fraud allegedly orchestrated by Indian-origin telecom executive Bankim Brahmbhatt.
According to the Wall Street Journal, Brahmbhatt’s firm, Carriox Capital, used falsified invoices and fake receivables—allegedly from telecom giants like T-Mobile and Telstra—to secure multimillion-dollar loans from BlackRock’s private credit division and other lenders.
The fraud began around 2020 and remained undetected until investigators flagged inconsistencies in Carriox’s documents, including fake email domains posing as customers. The revelations led Carriox to file for bankruptcy in August 2025, while Brahmbhatt declared personal bankruptcy.
The fraudulent scheme went largely unnoticed by lenders, including BlackRock’s newly acquired $12B private credit division, originally part of HPS Investment Partners, and BNP Paribas. Legal proceedings are underway to recover the funds.
The scandal has shaken confidence in the private credit market and raised serious concerns about due diligence and risk oversight, especially in light of BlackRock’s recent expansion into alternative lending.
