Judge Denies Bail to Orange County Investor Over Flight Risk and Witness Threats

Mahender Makhijani, a dual-citizen investor from Corona del Mar, was denied bail by U.S. Magistrate Judge Autumn Spaeth, who determined he was both a flight risk and a threat to witnesses. Prosecutors allege Makhijani orchestrated a sophisticated fraud that secured an October 2024 loan from Phoenix-based Western Alliance Bank, now defaulting at roughly $99 million. The court cited false statements about his drug use and a death threat directed at a bank employee who testified.

An associate, Deba Shyam, who is cooperating with authorities, had lied about the source of a $450,000 check used for a prior bail bond, which the judge said was funded by Makhijani using others’ money. In a separate civil arbitration, Makhijani was ordered to pay $1.34 billion to real-estate mogul Mohammad Honarkar for a fraudulent joint-venture scheme. His defense attorney indicated an appeal will be pursued.