A fraud ring that falsely claimed to be suppliers of personal protective equipment (PPE) during the COVID-19 pandemic stole hundreds of thousands of pounds, which they used to fund luxury cars and extensive home improvements. Jogesh Bhandari, 59, from Loughborough, established a company in 2020 to engage in the purported buying and selling of millions of boxes of gloves. His co-conspirators included Craig Morris, 43, from Lytham St Annes, Lancashire, and Frank Labruzzo, a U.S. Assistant Attorney General with the Louisiana State Department of Justice.
Labruzzo facilitated the scheme by providing a fake escrow service, a mechanism where funds are held until contractual conditions are met. In transactions between November 2020 and late 2021, defrauded companies paid into the escrow account, but the funds were immediately diverted to Labruzzo, Bhandari, and other companies. Bhandari was observed in video footage showing off a new luxury sports car purchased with the stolen money, expressing his delight. Police body-worn camera footage captured Bhandari's arrest.
During the fraud, Bhandari sent forged documents to potential suppliers, including bank statements claiming balances up to $125 million and glowing references to encourage trade. In one instance in early 2021, he received over $3.18 million for an order of nitrile gloves intended for U.S. hospitals, which were never delivered. In a subsequent deal in late 2021, Bhandari convinced a supplier he was a major player in the PPE industry with access to hundreds of millions of dollars. The company agreed to a deal worth $1.8 billion, and Labruzzo provided a fraudulent letter stating Bhandari had deposited $35 million as security. The company then paid $1.35 million for the first two planned shipments.
This $1.35 million was sent directly to Bhandari's business account, controlled by his wife, Meenakashi (Meena) Bhandari, 58. From this account, Bhandari sent £200,000 to Morris and purchased a Porsche. Communication between Bhandari and Morris, including over 47,000 WhatsApp messages and emails, revealed their intent to profit from the PPE shortage. Morris stated, "All over the news is all about ppe shortage. Let's clean up!! Milk it... fill ya boots." Bhandari replied, "it's about a good teamwork and EVERYONE making money." Bhandari also sent an image of a Rolls Royce to Morris, saying, "But if I want one of these [Rolls Royce] then we need to keep going."
Approximately £126,000 was spent on Bhandari's new Porsche. Additional funds were used for kitchen renovations and significant home improvements at Bhandari's residence, which he shared with Meena. Bank records indicated that the Bhandaris spent hundreds of thousands of pounds on luxury watches, jewelry, cars including an Audi A5, a Land Rover Discovery, and a VW Golf, as well as international travel packages. Meena Bhandari was charged with money laundering, as investigations revealed her awareness of the fraudulent origins of the funds. Morris was scheduled to receive regular £5,000 payments, but the arrangement ceased after a falling out in late 2021.
All three defendants were arrested in February 2023 and subsequently convicted at Leicester Crown Court following a five-week trial. Labruzzo and one other individual had previously been convicted in the United States. The Bhandaris and Morris are scheduled for sentencing on August 21.
Paul Boniface, operations manager at the National Crime Agency (NCA), stated that the pandemic created an environment where fraudsters like the Bhandaris and Morris could exploit businesses for financial gain. He added that such fraud diverts essential equipment from genuine organizations and has far-reaching consequences beyond immediate financial losses for legitimate businesses. The NCA indicated its continued commitment to prosecuting individuals who cause significant harm to the economy through fraud.