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The world’s biggest investment group is facing heavy losses after its shadow banking business fell victim to an alleged $500m (£380m) fraud.
BlackRock’s private credit investment arm, HPS Investment Partners, has started legal action to recover loans it made to a US telecom firm, which has been accused of faking payments from customers. ...
However, BlackRock claims that when it tried to verify these receivables, the scheme unravelled, with funds from the loans instead diverted offshore.
The US funds giant alleges that Mr Brahmbhatt and his companies had forged contracts, emails and invoices to make it seem as though this money was owed by established telecoms companies.

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