Federal agents showed up at the Corona del Mar home of 44-year-old businessman Mahender Makhijani on Wednesday, arresting him as part of a federal probe into nearly $100 million in alleged loan fraud. Prosecutors say a criminal complaint accuses him of falsifying title insurance records and using a web of shell companies to make pledged collateral look far more valuable than it actually was. He is scheduled to make an initial appearance this week in U.S. District Court in Santa Ana.
What prosecutors allege
According to federal prosecutors, Makhijani controlled Cantor Group V, a Newport Beach entity named in the complaint, and a federally insured lender, identified in court filings as “Bank #1,” advanced nearly $100 million so Cantor could originate or buy real-estate loans. An affidavit cited by prosecutors alleges that between September 2024 and April 2025, Makhijani or a subordinate edited title insurance policies in Adobe, stripped metadata or rescanned altered files, then submitted those doctored records so Cantor would appear to hold first-lien positions.
Those details are laid out in a press release from the U.S. Attorney’s Office, Central District of California, which characterizes the title edits and metadata removal as central to the alleged scheme.
How the civil fight connects
The arrest lands just after a bruising May arbitration in which a JAMS arbitrator ordered Makhijani and his firm Continuum Analytics to pay roughly $1.34 billion to Laguna Beach developer Mohammad Honarkar after finding fraud and related breaches. Honarkar’s legal team said the award followed a multi-week evidentiary hearing and reported that many properties tied to the joint venture later slid into foreclosure or receivership.
The law firm representing Honarkar, Halpern May, summarized the award in a written release.
Who’s investigating
The investigation features a lineup of federal agencies: IRS Criminal Investigation special agents, officials from the FDIC Office of Inspector General, the FBI, and the Federal Housing Finance Agency Office of Inspector General, among others. Investigators say they traced layered transfers and disguised accounts while following the money tied to the alleged fraud.
Prosecutors contend that the editing of title policies and removal of metadata were crucial to convincing the lender that Cantor held top lien positions. The government release also notes that Assistant U.S. Attorneys Kevin Y. Fu and Gregory W. Staples are prosecuting the case, while AUSA Tara B. Vavere is overseeing asset-forfeiture issues, and it outlines the investigative partners and the next procedural steps in court.
Legal implications
Makhijani is charged with bank fraud and, if convicted, faces a statutory maximum sentence of 30 years in federal prison, as reported by the Los Angeles Times. The same reporting states that Bank #1 filed a civil lawsuit in Los Angeles Superior Court after discovering the allegedly falsified records.
A criminal complaint is only an allegation, and Makhijani, like any defendant, is presumed innocent unless and until proven guilty in a court of law.
Next steps and reactions
Makhijani is expected to make his initial appearance in U.S. District Court in Santa Ana this week, according to court papers and the federal government’s release. Honarkar, who secured the arbitration award, told the Daily Pilot that he felt vindicated and declared, “This is justice,” after learning of the arrest, as reported by the Los Angeles Times.
Honarkar also urged prosecutors to look beyond Makhijani himself, arguing that the scale of the alleged scheme suggested that multiple people were involved.
