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A California businessman has been charged with bank fraud in connection with an alleged scheme that prosecutors say misled Western Alliance Bancorp into providing nearly USD 100 million in financing. Authorities claim falsified title insurance policies were used to inflate the value of collateral backing real estate-related loans, allowing additional borrowing. The criminal case is linked to a civil lawsuit filed by the bank last year seeking recovery of USD 98.6 million. While the lender has not reported a loss so far, the case has drawn attention due to its connection with a broader investigation involving real estate lending activities.
A California businessman has been criminally charged for allegedly defrauding Western Alliance Bancorp out of nearly USD 100 million by using falsified title insurance policies to increase the apparent value of collateral pledged for loans.
According to a criminal complaint made public in the past week, Mahender Makhijani, 44, of Newport Beach, faces a bank fraud charge that carries a maximum prison sentence of 30 years. The case was announced by First Assistant U.S. Attorney Bill Essayli in Los Angeles.
The allegations are connected to a civil lawsuit filed by Western Alliance last year against Makhijani's company, Cantor Group V. In that lawsuit, the bank claimed it was owed USD 98.6 million. The civil case has been referenced in the criminal complaint.
Prosecutors alleged that Cantor secured USD 100 million in financing from Western Alliance in 2024 to originate or acquire loans backed by real estate assets. Authorities claim Makhijani manipulated title insurance documents to make it appear that Cantor held a first-priority lien on certain collateral, even though other creditors had a higher claim on those assets.
The complaint stated that Adobe software was allegedly used to create the altered title policies. By presenting Cantor as the primary lienholder, the collateral appeared more valuable than it actually was, enabling the company to obtain financing under false pretences, prosecutors alleged.
Federal authorities further claimed that if Western Alliance had been aware of the alleged misrepresentations, it would have declared Cantor in default and sought immediate repayment of the nearly USD 100 million outstanding under the financing arrangement.
The criminal proceedings add to scrutiny surrounding Cantor and related entities. Cantor shared a Newport Beach address with Continuum Analytics, a real estate investment firm whose offices were searched by FBI agents during 2025. Reuters had previously reported links between the companies and problematic loans involving Western Alliance and Utah-based Zions Bancorp.
Neither Cantor Group V nor Continuum Analytics has been named as a defendant in the criminal case.
A federal public defender representing Makhijani had not responded to requests for comment. Lawyers who represented Cantor in the bank's civil lawsuit also did not immediately comment. Western Alliance similarly did not provide a response.
The Phoenix-based lender remains one of the largest regional banks in the United States, reporting assets of USD 98.9 billion at the end of the first quarter of this year.
According to the complaint, Western Alliance has not yet recorded a financial loss because it may still recover the funds from guarantors connected to the financing arrangement.
In a court filing submitted during the civil litigation last year, Cantor denied allegations of fraud and denied providing altered or doctored title insurance policies to the bank.
Source Reuters
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