US probes telecom firms after BlackRock’s HPS uncovers alleged $400 million fraud: Report

U.S. prosecutors are probing a group of telecoms firms after BlackRock’s private credit arm, HPS Investment Partners, said it lent them over $400 million backed by receivables that appear to be fake, the Financial Times reported on Monday.

The Department of Justice is investigating entities tied to Bankim Brahmbhatt, a little-known executive whose companies borrowed heavily from HPS, the report added, citing two people with knowledge of the matter.