Federal authorities arrested Mahender Makhijani, 44, of Corona del Mar, California, on June 11, 2026, on a criminal complaint alleging he defrauded Western Alliance Bank out of nearly $100 million by fabricating title insurance documents [1]. According to the complaint, Makhijani used Adobe software to manipulate the documents, making collateral pledged against loans appear substantially more valuable than it was [1]. The arrest was coordinated by the FBI, IRS Criminal Investigation, and the FDIC's Office of Inspector General [1].
The case falls under federal bank fraud statutes, which carry a maximum sentence of 30 years in prison per count upon conviction [1]. The U.S. Attorney's Office for the Central District of California, under U.S. Attorney Bill Essayli, is prosecuting the matter [1]. Makhijani operated through entities including Cantor Group V LLC, and the alleged scheme centered on real estate collateral presented to Western Alliance Bank as security for financing [1][2]. Investigators and industry analysts have flagged potential exposure at other lenders as well, including Zions Bancorp and Preferred Bank, suggesting the fraudulent collateral may have touched multiple credit relationships [3].
The arrest came days after a separate civil arbitration proceeding concluded with an order directing Makhijani to pay $1.34 billion to a defrauded business associate, a figure that underscores the breadth of the financial activity under scrutiny [2]. The criminal complaint is a charging instrument, not an indictment, meaning a grand jury has not yet voted to return formal charges. Makhijani is presumed innocent unless and until proven guilty in court [1].
Prosecutors have not yet announced whether a detention hearing has been scheduled or whether Makhijani has retained counsel. The government's next steps will likely include a preliminary hearing to establish probable cause and a determination on pretrial detention, followed by a decision on whether to seek a grand jury indictment in the Central District [1]. The scale of the alleged loss, combined with the concurrent arbitration award and the involvement of multiple federally regulated lenders, signals that investigators are likely to examine whether additional institutions or individuals were drawn into the scheme [3].