A $100-million loan, $1.34-billion award — and 1 arrest
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Well, that escalated quickly, at least as far as we who sit in the bleachers could tell.
I’m referring to the stunning arrest at his Corona del Mar home last Wednesday of Mahender Makhijani by federal agents on suspicion of bank fraud, after a criminal complaint alleged he falsified documents and used a network of shell companies to obtain a $100-million loan.
That news came on the heels of word that an arbitrator had awarded about $1.34 billion to Laguna Beach businessman Mohammad Honarkar in connection with a years-long dispute with Makjihani and his Newport Beach real estate firm, Continuum Analytics, over a joint venture involving a real estate portfolio soured.
In the May 29 Daily Pilot story by Andrew Turner that followed the $1.34B award, the reporter quoted a news release from Honarkar’s attorney, who stated the arbitrator’s award “reflects both the scale of the real estate portfolio involved and the years of litigation required to uncover the full scope of the misconduct.”
That portfolio included about two dozen properties in Irvine, Laguna Beach, Los Angeles, Newport Beach, Redlands and Tustin. Among them were the Hotel Laguna and the 14 West hotel in Laguna Beach, where a battle over ownership and operation played out publicly in a civil dispute involving Makhijani and Honarkar at the properties in 2023, according to Turner’s reporting.
The misdeeds that the IRS allege Makhijani undertook that led to last week’s arrest involve another Newport Beach business entity he controls, Cantor Group V, according to the news release issued by the Department of Justice.
“According to an affidavit filed with the June 8 criminal complaint, a federally insured bank — identified by federal officials only as Bank #1 — advanced Makhijani’s company nearly $100 million so it could originate or buy real estate-backed loans,” reads the story under the joint byline of Turner and our assistant editor, Sara Cardine. “Cantor was expected to pledge the secured loans and their underlying collateral to the bank, paying it back from the loans’ proceeds, the DOJ reported.”
Prosecutors allege Makhijani “or a subordinate,” using Adobe, committed fraud when he/they doctored title insurance policies to appear that Cantor had first lien position on the loans, a position that was required by the bank.
Honarkar, the man who was awarded the $1.34 billion by the court arbitration process, told Turner in a phone interview last Wednesday that he’d heard of Makhijani’s arrest via text messages from acquaintances.
“The first [thought] that came to me, ‘There is a god,’” an emotional Honarkar said. “This is justice.”
For his part, Honarkar has a couple of hopes: He needs the correct documents so he can reclaim all the properties tied up in his dealings with Makhijani, and he hopes the government helps him get his hands on them, and he wants the DOJ to go after Makhijani’s associates.
“He wasn’t working alone,” Honarkar told Turner. “Those people need to be brought in, because obviously, that’s how they were able to [commit] such a magnitude of fraud.”
MORE NEWS
• On June 3, the same day the TimesOC newsletter arrived to subscribers’ inboxes pointing out that Orange city officials were struggling with a decision about placing a sales tax measure on the November ballot, the City Council held a special meeting and voted to do just that, settling on seeking a 1% sales tax increase for a 13-year term. Last week, the council approved the 2026-27 budget which will have to be revisited if voters turn down the sales tax increase.
• At a study session last week the Newport Beach City Council learned of the enhanced fortifications in place to mitigate the potential for out-of-control partying during Independence Day celebrations this year. Among other measures, the police department is doubling mutual aid assistance from outside law enforcement agencies to more than 60 personnel so that about 200 sworn police are expected to patrol the city during the holiday weekend.
• Earlier this month nostalgia swept over users of the old community swimming pool at Laguna Beach High School, which is being replaced with a new 45-meter pool with16 swim lanes, as well as a modern restroom and changing areas, shaded seating and more. Two parties filled with people paying their respects to the old facility were held before its demise and the final “Paws in the Pool” puppy swimming party also took place, according to this Daily Pilot story.
• The Costa Mesa City Council last week reached an agreement with Westminster Adoption Group and Services (WAGS), a Westminster-based nonprofit, to serve as its interim animal shelter provider following the council’s recent decision to part ways with Priceless Pets.
CRIME
• A fugitive suspected in two murder cases — one in NorCal and one in Westminster — who had eluded law enforcement for eight years was arrested in Laos in late May. On June 9, Myung Jin Kim, 31, a South Korean national, was first booked into the Anaheim Police Department jail for one day and was transported to Santa Clara County on June 10.
COURTS
• Jacob Riley Manndavis, a 30-year-old transient, pleaded guilty Friday to attempted murder, assault with a deadly weapon and inflicting injury on an elder adult and was immediately sentenced to 15 years in prison for slamming a skateboard on the head of a 79-year-old man in Costa Mesa in January 2025.
PUBLIC SAFETY
• An exhaustive search first launched on the evening of Tuesday, June 9, came to a heartbreaking end Thursday morning when the lifeless body of a 5-year-old San Bernardino girl who had been swept off a rock and into the ocean near Laguna Beach’s Treasure Island was located Thursday morning not far from Christmas Cove. The incident occurred during high surf conditions that lasted all week and are continuing this week along the Orange County coast, prompting increased risk of drowning warnings from the National Weather Service.
• The fatal shooting by police of a 16-year-old Santa Ana resident alleged to have been involved in a domestic dispute and brandishing a knife just before 10: 30 p.m. on Sunday remains under investigation this week. The incident occurred in the 3400 block of South Main Street. The Santa Ana Police Department’s Homicide Unit, the Internal Affairs Division and the Orange County district attorney’s office will investigate the shooting.
• A Las Vegas man died after being run over by an alleged hit-and-run driver in Irvine last Wednesday night at Alton Parkway and Irvine Center Drive, according to the Irvine Police Department, who sought the public’s help in identifying the driver. Yesterday, following a tip the police received, a 25-year-old Lake Forest man, Felix Gerardo Murillo, was charged with felony hit-and-run with permanent and serious injury in connection with the incident, City News Service reported.
SPORTS
• LA28, the nonprofit organizing the 2028 L.A. Olympics, announced Monday it will open volunteer applications this July 14 to fill 60,000 volunteer opportunities for the Games, which are scheduled for July 14-30, 2028 and will include a couple of Orange County venues. To learn more, visit la28.org/volunteer
• Mike Trout hit his 16th homer of the season (420th of his career) Monday night, but the Angels fell to the Diamondbacks, 4-3.
LIFE & LEISURE
• Father’s Day is this Sunday. To jump start ideas on how to entertain Dad on his big day, TimesOC’s Sarah Mosqueda curated this list of possibilities (most, but not all, involve food) for your consideration.
• Jordan Small, owner-operator of Small’s Smash Club in his hometown of San Clemente, has opened a second location of the burger restaurant in South Laguna Beach and Daily Pilot reporter Andrew Turner interviewed the entrepreneur for this feature story.
• Robots recently duked it out in San Clemente, in the interest of animal welfare at a special fundraising event hosted by Sonance Cares.
CALENDAR
• Fountain Valley’s annual Summerfest takes place this Thursday night through Sunday at Fountain Valley Sports Park. The event features carnival rides and games, live entertainment. On Saturday night there will be fireworks. Hours are from 5 to 10 p.m. Thursday, 5 to 11 p.m. Friday, 3 to 11 p.m. Saturday and 2 to 8 p.m. Sunday. Admission is $5; tickets can be purchased here.
• Full-throttle fun ahead: Harley Night #2 at the Costa Mesa Speedway is set to thrill motorcycle enthusiasts this Saturday, June 20 in the Action Sports Arena at the OC Fair & Event Center in Costa Mesa. Gates open at 6 p.m.; the first race starts at 7:30 p.m. Admission is $30, children 10 and under are admitted free. Parking is $15.
• “Bright Cecilia: The Power of Harmony,” the 46th annual Baroque Music Festival, opens Sunday and continues through June 28, with performances staged at different venues in Corona del Mar. For a list of the concerts, their times and locations, visit bmf-cdm.org.
KEEP IN TOUCH
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