BlackRock’s stock price has seen no change, but behind the scenes, several private-credit investors are trying to recover hundreds of millions of dollars after falling victim to a massive telecom fraud scam. The lenders claim that Bankim Brahmbhatt, owner of Broadband Telecom and Bridgevoice, fabricated accounts receivable used as loan collateral, owing them over $500 million. The incident marks another breakdown in opaque US debt markets, leaving the investors with significant financial losses.
Source: https://www.wsj.com/finance/blackrock-stung-by-loans-to-businesses-accused-of-breathtaking-fraud-6de5c3a7