BlackRock duped into loaning $430M to telecom entrepreneur who allegedly faked invoices. How to avoid a similar scam

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0;switch(e){case"expanded_panel":o='{promoMarkup}{notifMarkup}',r=n._store.getNotifications(),a=n._generatePanelMarkup(o,r),i.innerHTML=a;break;case"error_panel":a=(o='{errorMsg}').replace("{errorMsg}",n._config.panel.errorMsg),i.innerHTML=a}t&&t()}else t&&t(new Error("No panel parent"))}},{key:"createPanelParentNode",value:function(e){e&&(e.innerHTML='',this._panelNode=document.getElementById(P))}},{key:"updateBadgeNode",value:function(e){if(e){var t=this._store.getNotifications().newCount,n=this._config.badge.maxCount;if(t){var o=t>n?n+"+":t;e.innerHTML=o}else e.innerHTML=""}}},{key:"addStyles",value:function(e){if(e&&"undefined"!=typeof window){var t=document.getElementById(this._config.panel.styleTagId);t||((t=document.createElement("style")).type="text/css",t.id=this._config.panel.styleTagId,t.innerText=e,document.head.appendChild(t))}}}]),e}(),j=function(){function e(t,n,o){E(this,e);var i=this;i._store=n,i._view=o,i._config=t;var 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that allegedly showed the group of borrowers were owed millions in receivables by major telecom groups.Thanks to Jeff Bezos, you can now become a landlord for as little as $100 — and no, you don't have to deal with tenants or fix freezers. Here's howDave Ramsey warns nearly 50% of Americans are making 1 big Social Security mistake — here’s what it is and 3 simple steps to fix it ASAPTurning 50 with $0 saved for retirement? Most people don’t realize they’re actually just entering their prime earning decade. Here are 6 ways to catch up fastThe Department of Justice has since launched an investigation into these invoices and entities tied to executive Bankim Brahmbhatt (2).Earlier in 2025, a court filing accused Brahmbhatt and his companies of "an extraordinarily brazen and widespread fraud," alleging the invoices used to verify the receivables were fabricated.This new filing highlights a troubling trend affecting large firms and everyday Americans alike: The Federal Trade Commission recently reported that Americans lost $12.5 billion to fraud in 2024, a 25% increase from the previous year (3).According to Reuters, HPS began lending to companies tied to Brahmbhatt in 2020, based on receivables the firms claimed were owed to them. But court filings claim those documents were fabricated — meaning the purported revenue may never have existed.This type of scheme is often called receivables fraud or invoice fraud.In simple terms, a borrower claims that customers owe them money for services rendered or previous purchases, thereby artificially inflating the borrower’s value.A lender then agrees to advance cash based on those outstanding invoices. If the invoices are fake or inflated, the lender is effectively lending against non-existent revenue.Private credit, where asset managers lend directly to companies outside traditional banks, has grown rapidly in recent years. Many of these loans rely heavily on documents such as invoices and accounts receivable as collateral. If that paperwork is falsified, the entire deal can quickly unravel, leaving the borrower with potential losses (4).And if a global asset manager with compliance teams, due diligence resources and outside auditors can allegedly be duped in this way, smaller lenders and everyday business owners may be even more vulnerable to such fraud.Terms and Privacy PolicyPrivacy & Cookie SettingsMore InfoS&P Futures6,892.25 -27.75 (-0.40%)Dow Futures49,255.00 -276.00 (-0.56%)Nasdaq Futures24,992.50 -88.50 (-0.35%)Russell 2000 Futures2,658.10 -22.50 (-0.84%)VIX18.63 +0.70 (+3.90%)Gold5,191.00 -3.20 (-0.06%)Trending tickersNFLX Netflix, Inc. 84.59 +1.88 (+2.28%)XYZ Block, Inc. 54.53 +2.59 (+4.99%)CRWV CoreWeave, Inc. 97.63 -0.38 (-0.39%)DUOL Duolingo, Inc. 117.45 +5.80 (+5.19%)RKLB Rocket Lab Corporation 72.65 +2.45 (+3.49%)PortfolioSign in to access your portfolioSign inTop gainersSEZL Sezzle Inc. 84.70 +22.08 (+35.26%)LMAT LeMaitre Vascular, Inc. 113.69 +22.31 (+24.41%)FA First Advantage Corporation 11.69 +2.17 (+22.79%)IONQ IonQ, Inc. 40.88 +7.29 (+21.70%)HPP Hudson Pacific Properties, Inc. 7.69 +1.33 (+20.91%)Top losersEOSE Eos Energy Enterprises, Inc. 6.74 -4.39 (-39.44%)ACMR ACM Research, Inc. 57.04 -11.43 (-16.69%)FOUR Shift4 Payments, Inc. 48.41 -8.96 (-15.62%)FSK FS KKR Capital Corp. 11.29 -2.03 (-15.24%)MIRM Mirum Pharmaceuticals, Inc. 92.19 -16.43 (-15.13%)Most activeNVDA NVIDIA Corporation 184.89 -10.73 (-5.49%)EOSE Eos Energy Enterprises, Inc. 6.74 -4.39 (-39.44%)NU Nu Holdings Ltd. 15.06 -1.59 (-9.55%)PLUG Plug Power Inc. 1.9100 0.0000 (0.00%)AAL American Airlines Group Inc. 13.94 +0.62 (+4.65%)Top economic eventsEarnings eventsMy earnings eventsEarnings events