Finshots Daily Bankim Brahmbhatt and the $500 million lesson in lending against thin air
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Nov 5, 2025 Dive into a shocking tale of deception as HPS Investment Partners uncovers a $500 million fraud linked to Telecom firms and elusive figure Bankim Brambhatt. Discover how initial audits led to red flags, revealing fabricated emails and vacant offices. The discussion highlights the murky waters of lending against intangible assets and the vital importance of stringent verification processes. This gripping story serves as a cautionary lesson for the finance world on the perils of trusting what exists only on paper.
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Half Billion Lent Against Thin Air
- HPS lent nearly $500 million to telecom entrepreneur Bankim Brambhatt against customer receivables that later proved fictional.
- Investigations found fake email addresses and forged receipts, and Brambhatt disappeared leaving lenders with worthless collateral.
Investigators Followed Fake Emails
- HPS hired Deloitte and CBIZ for reviews and later Quinn Emanuel to trace the fraud when email irregularities surfaced.
- The probes showed customer emails were fabricated and money may have been moved to India or Mauritius before firms filed for bankruptcy.
Intangible Collateral Is Inherently Risky
- Asset-backed lending is fragile when collateral is intangible data like invoices and email trails.
- If paperwork is fictional, the whole loan structure collapses because there were never real assets to secure it.