Orange County businessman Mahender Makhijani, 44, has been ordered held without bail by a federal judge who declared him a danger to the community, citing allegations of bank fraud, drug use, prostitution, and death threats. The ruling came as Makhijani awaits trial on charges of defrauding Phoenix-based Western Alliance Bank out of nearly $100 million.
Federal Judge Autumn Spaeth rejected Makhijani's request for release, stating that evidence indicated he had "paid a bribe, used serious drugs (cocaine and ketamine), and participated in prostitution." The judge determined these activities, combined with alleged death threats made against a bank employee to influence testimony, made Makhijani a flight risk and a danger to others.
Makhijani pleaded not guilty to two felony charges related to the loan fraud. Prosecutors allege that he doctored title policies for real estate pledged as collateral, artificially inflating its value to secure the approximately $100 million loan, which remains unrecovered.
Before his arrest in June, Makhijani allegedly lived a lavish lifestyle, documented in court papers. This included a fleet of luxury vehicles such as a Bentley, Porsche, and Mercedes G-Wagon, frequent private jet travel, and extensive use of money to support his lifestyle. He reportedly maintained two side-by-side mansions in Newport Beach, one of which was used for his in-laws.
Witnesses have also come forward with allegations of blackmail and of hosting parties involving sex workers and drugs, sometimes attended by bank employees. Makhijani allegedly threatened to expose participants if they did not comply.
Prior Disputes and Alleged Violence
The legal troubles extend beyond the current federal charges. In May, an arbitrator found Makhijani liable for over $1.3 billion in damages stemming from real estate dealings with businessman Mohammad Honarkar. A dispute in 2023 over control of the Hotel Laguna reportedly led Makhijani to send bouncers who allegedly roughed up workers. This incident, along with a similar confrontation at the 14 West Hotel, led to temporary closures of the establishments after armed guards were involved in a brawl.
Honarkar detailed alleged threats made by Makhijani, including intentions to "destroy my reputation," make his family "on the street," and generally make his life "miserable." The arbitrator ultimately concluded that Makhijani had breached agreements and defrauded Honarkar.
Makhijani was arrested in June by armed federal agents who stormed his Newport Beach mansion. The arrest involved agents in tactical gear breaching the property's gate and demanding entry. Makhijani was taken into custody in his pajamas and transported to jail.