BlackRock recently fell victim to what can only be described as a “staggering” scam, involving Bankim Brahmbhatt, who allegedly forged receivables as collateral for loans, leading to over $500 million in defaults. What’s worse? Investigations have uncovered that all customer emails provided over the past two years were fabricated, and fraudulent contracts date back to 2018.
Brahmbhatt is accused of moving assets to offshore accounts in India and Mauritius, and both his telecom company and financing division filed for bankruptcy in August. Brahmbhatt himself filed for bankruptcy shortly after. Currently, BlackRock believes he is in India.
The question that arises is, if BlackRock can’t spot something as obvious as this scam, how many more frauds are lurking beneath the surface?
Probably as a result of no interest loans a few years ago. A consequence of flooding the markets with money to save the markets.