Cocaine, ketamine, prostitutes and alleged loss of life threats have turned a flashy Orange County businessman right into a “hazard to the group,” in response to a federal decide who ordered him locked up as he awaits trial on allegations he conned a financial institution out of practically $100 million.
Indian-born businessman Mahender Makhijani, 44, was hauled out of his tony Newport Seashore mansion in June by armed federal brokers after being accused of defrauding Phoenix-based Western Alliance Financial institution.
However the alleged monetary fraud is just a part of the case.
Federal Decide Autumn Spaeth on Monday rejected Makhijani’s request to be launched, pointing to allegations that he “has paid a bribe, used severe medication (cocaine and ketamine), and took part in prostitution.”
Makhijani “is a hazard to others and the group by clear and convincing proof,” Spaeth added in her choice ordering the financier to stay behind bars pending trial.
The decide additionally decided Makhijani is a flight threat and mentioned he made loss of life threats towards an Orange County financial institution worker in an obvious effort to affect the worker’s testimony.
Makhijani has pleaded not responsible to 2 felony fees stemming from an almost $100 million mortgage from Western Alliance Financial institution.
The businessman as soon as flaunted a lavish life-style that included a fleet of high-end sports activities vehicles, non-public jet journey and sex-fueled events, in response to allegations outlined within the case.
Federal prosecutors accuse Makhijani of cooking the books on the mortgage by doctoring title insurance policies to make actual property pledged as collateral seem considerably extra beneficial than it really was.
The practically $100 million stays unrecovered, in response to courtroom papers.
Makhijani loved a high-flying life-style earlier than his arrest. He typically wore designer sun shades indoors and favored posh linen shirts, protecting two Newport Seashore mansions aspect by aspect, with the second reserved for his in-laws.
Makhijani rolled round in a fleet of luxurious vehicles that included a Bentley, Porsche, and Mercedes G-Wagon, controlling “huge sums of cash,” to help his lavish life-style, courtroom papers say.
Witnesses mentioned he would blackmail his underlings, internet hosting events with intercourse employees and medicines that had been attended by financial institution staff, later threatening to show those that participated within the twisted festivities.
An arbitrator in Could discovered Makhijani answerable for a greater than $1.3 billion in damages over his actual property dealings with Laguna Seashore businessman Mohammad Honarkar.
In a 2023 dispute with Honarkar over who had the appropriate to run the Lodge Laguna, Makhijani introduced his bouncers into the resort foyer, the place they roughed up employees, proof in Makhijani’s prison grievance reveals.
The disturbances induced the Laguna and one other resort known as 14 West to be quickly closed after armed guards had been concerned in a 20-person brawl.
Honarkar detailed in courtroom paperwork the threats Makhijani allegedly made towards him.
“He’s going to destroy my status in Laguna. He’s going to verify my children and my grandkids are on the road. He’s going to make my life depressing,” Honarkar mentioned.
In Could an arbitrator concluded that Makhijani breached agreements and defrauded Honarkar.
The California Submit was there when federal brokers swooped on Makhijani to make his arrest.
With automated weapons drawn, G-men in tactical gear pounced on the slick financier at his plush mansion within the unique coastal enclave of Corona del Mar.
Officers with a defend breached the house’s fancy gate and pounded on the entrance door. “Police with a warrant – Come to the door!” yelled one agent.
After a number of tense moments, Makhijani got here out in pajamas. The feds positioned him in cuffs and put him in a black sedan to be transported to jail.
