India, Nov. 1 -- Bankim Brahmbhatt, the Indian-origin CEO of US-based companies Broadband Telecom and Bridgevoice, has been accused of "breathtaking" financial fraud as investment firm BlackRock's private credit arm and other lenders try to recover more than $500 million lost in a loan fraud.

The lenders have accused Brahmbhatt of fabricating accounts receivable that were meant to be used as loan collateral and filed a lawsuit against the CEO in August, The Wall Street Journal reported. The lawsuit alleges that Brahmbhatt's firms created a false impression of financial health on paper while transferring money offshore to India and Mauritius.

Brahmbhatt denies the fraud allegations, his lawyer reportedly said.

The alleged fraud dates ba...