DOJ’s Fraud Crackdown in California Hits New Milestone with $100 Million Bank Fraud Arrest

First Assistant United States Attorney Bill Essayli announced today the arrest of Mahender Makhijani on federal charges of defrauding a bank out of nearly $100 million through a sophisticated scheme involving falsified title policies and forged documents. Makhijani is a 44-year-old lawful permanent resident from India living in the exclusive enclave of Spyglass Hill in Corona del Mar, owning neighboring mansions for him and his in-laws on Montecito Dr.

Makhijani, who controlled Cantor Group V LLC, a Newport Beach-based lending company, allegedly manipulated first-lien real estate loan collateral requirements between September 2024 and April 2025. 

Mahender Makhijani, 44, a lawful permanent resident from India living in Corona del Mar, was arrested this morning on a federal criminal complaint charging him with defrauding a bank out of nearly $100 million.

Makhijani controlled Cantor Group V LLC, a Newport Beach-based… pic.twitter.com/wEcSe5mQpW

— F.A. United States Attorney Bill Essayli (@USAttyEssayli) June 10, 2026

According to the criminal complaint, he and a subordinate forged title policies in Adobe, altered metadata, and submitted false records to the victim bank while providing misleading explanations during calls and in spreadsheets. If convicted, Makhijani faces up to 30 years in federal prison. He is expected to make his initial appearance this afternoon in U.S. District Court in Santa Ana. 

In a statement accompanying the announcement, Essayli emphasized the broader impact of such fraud: “Our nation’s economy and welfare depend on a healthy banking system. When lenders are deceived, it has downstream effects on consumers and businesses.” All defendants are presumed innocent until proven guilty in a court of law. 

This latest arrest comes as part of Essayli’s aggressive push against fraud in California, which has already uncovered more than $200 million in taxpayer losses through arrests and indictments across multiple schemes since he launched targeted task forces. Key cases include:  

• Homelessness Fraud and Corruption Task Force (launched April 2025): Early arrests in October 2025 targeted Cody Holmes and Steven Taylor, involving tens of millions in embezzled affordable housing funds (including over $20 million in direct damages sought in one civil suit) and bank fraud tied to properties sold to homeless housing developers. Essayli called these cases “just the tip of the iceberg,” with ongoing probes into billions in misused homelessness spending.   
• Operation Never Say Die (April 2026 health care fraud takedown): Eight defendants arrested (with 11 charged total) in a $50+ million Medicare scam involving sham hospice facilities that billed taxpayers for non-terminal patients. Essayli stated, “We are enforcing a zero-tolerance policy for criminals who defraud American taxpayers. The defendants arrested this morning who are charged with stealing millions of dollars of health care benefits got caught and now face years in federal prison.”   
• Identity theft ring (March 2026): 10 arrested for stealing approximately $17 million from elderly California homeowners through fraudulent loans. 

Additional probes into election fraud, voter rolls, and other white-collar schemes are underway, with Essayli’s office coordinating with the FBI and IRS. 

In a recent Fox News appearance, Essayli noted that just three homelessness-related cases had already exceeded $100 million in exposed fraud, warning the total could reach billions. This latest arrest marks the continuation of Essayli’s zero-tolerance approach.

As reported previously in the California Globe, that initiative targeted waste, abuse, and corruption in funds meant to address California’s homelessness crisis, a problem that has consumed billions in taxpayer dollars with little visible results. 

Essayli, who leads the U.S. Attorney’s Office for the Central District of California, has repeatedly vowed to hold fraudsters accountable regardless of status. “Fraud arrests are underway,” he has stated. “California leads the nation in fraud, and we will hold those responsible accountable.” 

As investigations expand, Essayli’s office continues to urge the public to report direct evidence of fraud. For election-related tips, contact CAElectionFraudTips@usdoj.gov.  

California Globe will continue to monitor these developments.