Investor Tied to Troubled Bank Loans Charged With Fraud by US

A California real estate investor whose firm was accused by Western Alliance Bancorp of an almost $100 million fraud was criminally charged by the US, the latest fallout from a portfolio of commercial properties that sparked credit concerns at several banks last year.

Mahender Makhijani, 44, was charged Wednesday with bank fraud for allegedly falsifying documents to get a loan, according to a statement issued by the US attorney in Los Angeles.

The case is significant because Phoenix-based Western Alliance, along with another regional lender, Salt Lake City-based Zions Bancorp, spooked their own investors late last year when they ...