A whirlwind of scandal involving drugs, deceit, and danger has thrust a flamboyant entrepreneur from Orange County into the spotlight. The high-stakes saga has led a federal judge to declare the businessman a “danger to the community,” resulting in his detention as he faces serious charges of nearly defrauding a bank of $100 million.
The story took a dramatic turn in June when Mahender Makhijani, a 44-year-old businessman originally from India, was taken into custody by federal agents with guns drawn. His arrest from his luxurious mansion in Newport Beach followed allegations of orchestrating a massive fraud against Western Alliance Bank, headquartered in Phoenix.
However, the alleged financial deceit is merely the tip of the iceberg.
In a recent court session, Federal Judge Autumn Spaeth denied Makhijani’s request for release. The judge cited troubling allegations, including accusations of bribery, rampant cocaine and ketamine use, and involvement in prostitution, painting a sordid picture of the defendant’s recent conduct.
Judge Spaeth concluded that there is “clear and convincing evidence” that Makhijani poses a threat to others and the broader community. Consequently, she ordered that the financier remain in detention while he awaits his trial.
The judge also determined Makhijani is a flight risk and said he made death threats against an Orange County bank employee in an apparent effort to influence the employee’s testimony.
Makhijani has pleaded not guilty to two felony charges stemming from a nearly $100 million loan from Western Alliance Bank.
The businessman once flaunted a lavish lifestyle that included a fleet of high-end sports cars, private jet travel and sex-fueled parties, according to allegations outlined in the case.
Federal prosecutors accuse Makhijani of cooking the books on the loan by doctoring title policies to make real estate pledged as collateral appear substantially more valuable than it actually was.
The nearly $100 million remains unrecovered, according to court papers.
Makhijani enjoyed a high-flying lifestyle before his arrest. He often wore designer sunglasses indoors and favored posh linen shirts, keeping two Newport Beach mansions side by side, with the second reserved for his in-laws.
Makhijani rolled around in a fleet of luxury cars that included a Bentley, Porsche, and Mercedes G-Wagon, controlling “vast sums of money,” to support his lavish lifestyle, court papers say.
Witnesses said he would blackmail his underlings, hosting parties with sex workers and drugs that were attended by bank employees, later threatening to expose those who participated in the twisted festivities.
An arbitrator in May found Makhijani liable for a more than $1.3 billion in damages over his real estate dealings with Laguna Beach businessman Mohammad Honarkar.
In a 2023 dispute with Honarkar over who had the right to run the Hotel Laguna, Makhijani brought his bouncers into the hotel lobby, where they roughed up workers, evidence in Makhijani’s criminal complaint shows.
The disturbances caused the Laguna and another hotel called 14 West to be temporarily closed after armed guards were involved in a 20-person brawl.
Honarkar detailed in court documents the threats Makhijani allegedly made against him.
“He’s going to destroy my reputation in Laguna. He’s going to make sure my kids and my grandkids are on the street. He’s going to make my life miserable,” Honarkar said.
In May an arbitrator concluded that Makhijani breached agreements and defrauded Honarkar.
The California Post was there when federal agents swooped on Makhijani to make his arrest.
With automatic weapons drawn, G-men in tactical gear pounced on the slick financier at his plush mansion in the exclusive coastal enclave of Corona del Mar.
Officers with a shield breached the home’s fancy gate and pounded on the front door. “Police with a warrant – Come to the door!” yelled one agent.
After a few tense moments, Makhijani came out in pajamas. The feds placed him in cuffs and put him in a black sedan to be transported to jail.