Prosecutors Say Altered Title Policies Propped Up A Nearly $100m Real Estate Loan In Bank Fraud Case

An Orange County real estate investor pleaded not guilty in a federal bank fraud case involving a nearly $100 million real estate lending relationship and title insurance policies prosecutors say were falsified.

Mahender Makhijani, 44, of Corona del Mar, was arraigned Monday in federal court in Santa Ana on charges tied to a loan made by Phoenix-based Western Alliance Bank, according to the Los Angeles Times.

The U.S. Attorney’s Office for the Central District of California said Makhijani is accused of manipulating title policies to make collateral pledged to the bank look more valuable than it actually was.

A trial is set for Aug. 11 before U.S. District Judge David O. Carter.

The Case Centers on a Nearly $100 Million Loan

Orange County real estate investor pleads not guilty in $100 million bank fraud case https://t.co/bvpQM3CWxN

— Laurence Darmiento (@ldarmiento) July 6, 2026

Prosecutors said Makhijani controlled Cantor Group V LLC, a Newport Beach-based company that had a lending relationship with the bank.

Under the agreement, the bank advanced nearly $100 million so Cantor could originate or buy loans secured by real estate.

Cantor was required to pledge loans where it held the first lien on the collateral, meaning the bank would be first in line if a borrower defaulted and the property had to be foreclosed on.

Prosecutors Say Title Policies Were Altered

Federal prosecutors allege Makhijani falsified title insurance policies from September 2024 through April 2025.

The altered policies made it appear that Cantor held first-lien positions on certain real estate collateral. Prosecutors said other creditors were actually ahead of Cantor, making the collateral less valuable to the bank.

The Justice Department said the title policies were edited using Adobe software, then printed and rescanned or otherwise changed to remove or alter metadata before being submitted to the bank.

The Bank Allegedly Relied on the False Documents

Prosecutors said Makhijani caused a then-employee to submit the false title insurance policies to the bank.

He also allegedly participated in teleconferences with bank representatives and lied about title issues the bank had identified.

In December 2024, prosecutors said he caused a spreadsheet with false explanations for those title issues to be submitted to the bank.

The Justice Department said the bank relied on the information when making lending decisions. If the bank had known the true value and lien position of the collateral, prosecutors said it would have considered Cantor in default and demanded immediate repayment of nearly $100 million.

The Criminal Case Is Separate From a $1.34 Billion Civil Award

The Los Angeles Times reported that Makhijani was also ordered by an arbitrator in May to pay Laguna Beach real estate figure Mohammad Honarkar $1.34 billion in a separate civil dispute.

That arbitration involved claims tied to a 2021 joint venture and the loss of more than two dozen properties Honarkar had owned, according to the Times.

Title Policies and Lien Position Should Be Checked Independently

Lenders, investors, and business partners reviewing real estate-backed debt can verify title insurance policies directly with the title company, compare lien position against county recorder records, and check whether any prior mortgages, deeds of trust, foreclosure filings, judgments, or competing security interests are already attached to the property.

A scanned title policy, spreadsheet explanation, or borrower-provided document should not be the only proof of collateral priority on a high-value loan.

Suspected bank fraud, false collateral documents, or altered title records can be reported to the lender, the title insurer, local law enforcement, and federal investigators. Potential cyber-enabled or document-based fraud can also be reported through the FBI’s Internet Crime Complaint Center at IC3.gov.

The post Prosecutors Say Altered Title Policies Propped Up a Nearly $100M Real Estate Loan in Bank Fraud Case appeared first on Insurance News | InsuranceNewsNet.