An Indian-origin financier is accused of running a $100 million bank fraud scheme in California. According to the New York Post report, he led a double life of luxury, intimidation and blackmail, which included hosting parties with sex workers and later using those events to pressure attendees.Mahender Makhijani, 44, was arrested on Wednesday after armed federal agents raided his mansion in Corona del Mar, an exclusive coastal neighborhood in Newport Beach, California. He is charged with bank fraud and faces up to 30 years in prison if convicted.Makhijani defrauded a local bank of approximately $100 million by falsifying real estate documents and inflating the value of properties used as collateral. The money has not been recovered yet. They used Newport Beach-based Cantor Group V LLC and a network of companies to carry out the scheme. He and a subordinate used Adobe software to alter title insurance records between September 2024 and April 2025, alter metadata, and submit fraudulent documents to the bank while providing misleading explanations in calls and spreadsheets.But as the New York Post reports, the allegations against Makhijani go beyond financial fraud.According to court documents and witness statements, he hosted private parties involving drugs and sex workers, some of which were attended by bank employees. He then used information about what happened at these events to blackmail participants and maintain control over employees and associates. He even threatened subordinates, saying he would “kill them” and send their “families” to the street and “their children to welfare.” He is also accused of blackmailing employees after meetings.They ran their operation through intimidation, threats and violence. He instructed associates to target rivals, break into businesses and put pressure on competitors. In one case, he placed eviction notices on the homes of a rival’s family members and also used a billboard to accuse the rival of robbery. Video evidence cited by prosecutors shows Makhijani directing associates in designer clothes during attacks on security guards, including breaking windows and seizing documents.Agents arrested him at his home following a raid by armed officers early Wednesday. He was taken out in handcuffs and after wearing pajamas for a while, he was taken to jail.Makhijani lived a lavish lifestyle, traveling by private jet, wearing designer clothes and owning luxury cars including a Bentley, Porsche and a Mercedes G-Wagon. He kept two mansions side by side, one of which was reserved for his in-laws.Most of his possessions are still inaccessible. “Makhijani has significant financial resources, but the government has not fully located and accounted for those resources, which are almost certainly not in Makhijani’s name,” the complaint states.The case is also linked to a long-running business dispute involving Hotel Laguna. In 2023, clashes related to the dispute reportedly led to violence at the hotel, leading to the hotel’s temporary closure. In May, arbitrators awarded businessman Mohammad Honarkar about $1.34 billion, finding that Makhijani breached agreements and committed fraud.Makhijani had earlier told associates that he would flee to India if caught.