Indian-origin CEO in US accused of fraud of Rs 4200 crore, what is the whole matter?:

News Topical, Digital Desk : American investment firm BlackRock has reportedly been hit by a fraud of more than $500 million (Rs 4,200 crore). The company has accused its Indian-origin CEO Bankim Brahmbhatt of the scam.

The company alleges that Brahmbhatt's telecom company perpetrated the fraud using a fake account. However, Brahmbhatt's lawyer has vehemently denied these allegations.

BlackRock's private credit card investment arm, HPS, entered into a deal with Brahmbhatt's company in September 2020. HPS announced an investment of $385 million in 2021, which was increased to $430 million in August 2024.

What is the whole matter?

In July, HPS received some fake email addresses related to investments, which were communicated to Brahmbhatt. Brahmbhatt assured the company of the situation. The company alleges that after this incident, Brahmbhatt stopped answering calls. When HPS officials arrived at Brahmbhatt's company, it was closed. Upon inquiry, it was discovered that Brahmbhatt's company had gone bankrupt.

Police is investigating

According to the Wall Street Journal, when Brahmbhatt's home in Garden City was visited, he was nowhere to be found. HPS says Brahmbhatt is in India. In August, the company filed a lawsuit against Brahmbhatt. A police investigation revealed that all the emails sent by the company were fraudulent.

HPS claims that the balance sheet Brahmbhatt prepared at the time of the investment was merely a paper trail. Brahmbhatt invested all the money in India and Mauritius. The police are now investigating the entire matter.