Orange County investor accused of $100M bank fraud denied bail after judge cites witness death threat

# Case outcome and immediate consequences U.S. Magistrate Judge Autumn Spaeth denied bail for Mahender Makhijani, 44, of Corona del Mar, ruling there are no conditions that will reasonably assure his appearance and the safety of others. Makhijani was taken into custody June 10 and had earlier been granted a $500,000 bail bond that federal prosecutors later challenged.

# Criminal allegations

Court filings list alleged tactics including the creation of falsified documents, transfers between accounts to shelter funds, payments characterized as bribes, and using other people's names and entities to deceive lenders.

# Threats, witness issues and bail funding The judge's written ruling highlights two issues that weighed against release. First, testimony indicated that an Orange County bank employee received death threats intended to influence their court testimony. Second, prosecutors presented evidence that an associate, Deba Shyam, lied about the source of a $450,000 check used to help post Makhijani's bail. The filings say Makhijani had paid for Shyam's car and house and had "orchestrated" use of others' funds for the bail bond.

Magistrate Spaeth also wrote that Makhijani lied about drug use and had a history of threatening people, which factored into the determination that he posed both a flight risk and a danger to the community.

# Civil arbitration and related claims

Although Makhijani has not been criminally charged in the arbitration, prosecutors' affidavit in the bank-fraud case alleges he used force and threats in dealings with Honarkar and others, including taking over the Hotel Laguna in 2023 while Honarkar was renovating it.

# Background on Makhijani and alleged lifestyle Court documents describe Makhijani as a dual citizen of India who has traveled there recently and owns property there. He built a business buying distressed assets and attracted wealthy Southern California investors. Prosecutors say the business funded a high-end lifestyle, including two multimillion-dollar Corona del Mar homes, a luxury apartment in Newport Beach and various luxury vehicles.

# Defense response and next steps Karren Kenney, Makhijani's criminal defense attorney, said she is seeking to appeal the detention ruling. Makhijani has pleaded not guilty to two felony charges in the federal bank-fraud case. With bail denied, he will remain in custody pending trial.

# Why the judge denied bail The judge's ruling combined evidence of threats to a witness, the alleged orchestration of third-party funding for bail, false statements about drug use, and the scale and sophistication of the alleged fraud. Taken together, the court concluded those factors made release unreasonable as to assuring appearance and community safety.