Orange County real estate investor pleads not guilty in $100 million bank fraud case

July 7, 2026 - 09:00

Mahender Makhijani, a prominent Orange County real estate investor already on the hook for $1.34 billion in a civil arbitration, entered a not guilty plea Monday to federal charges of bank fraud. The criminal case accuses him of orchestrating a scheme to defraud financial institutions out of more than $100 million.

Makhijani appeared in federal court to face the charges, which stem from a separate legal battle that saw him ordered to pay a massive sum in a Laguna Beach real estate dispute. The indictment alleges that he used fraudulent loan applications and falsified documents to secure funding from multiple banks, then diverted the money for personal use and to prop up his failing real estate ventures.

Prosecutors claim the scheme ran for several years, involving complex transactions and shell companies designed to hide the true nature of the loans. The banks involved suffered significant losses when the loans defaulted. Makhijani's attorney argued outside the courtroom that his client is innocent and plans to fight the charges vigorously.

The case has drawn attention due to the staggering sums involved and the contrast between Makhijani's previous business success and his current legal troubles. If convicted on all counts, he faces a potential sentence of decades in federal prison. A trial date has not yet been set.