COVID-19 Fraudsters Sentenced for Millions in PPE Scheme

Two men have been sentenced to prison and a woman to a suspended sentence for their involvement in a fraudulent scheme that siphoned millions of pounds intended for personal protective equipment (PPE) during the COVID-19 pandemic.

Jogesh Bhandari, 59, of Loughborough, was sentenced to eight years in prison. Craig Morris, 43, of Lytham St Annes, Lancashire, received a three-year and nine-month sentence. Meenakshi (Meena) Bhandari, 64, was handed a two-year suspended sentence and ordered to complete 250 hours of unpaid work.

The scheme involved Bhandari and Morris launching a company in 2020 to buy and sell nitrile gloves at the height of the pandemic. They failed to fulfill multi-million pound contracts, instead diverting funds to their own use. The fraud was facilitated by a US Assistant Attorney General from the Louisiana State Department of Justice, Frank Labruzzo, who provided a fraudulent escrow service.

In one instance in November 2020, after agreeing to provide 12 million boxes of gloves, Bhandari received funds into an escrow account, which were then immediately moved and paid out to Bhandari, Labruzzo, and other companies. A subsequent deal in early 2021 for over $3.18 million worth of gloves saw payments go directly into a business account controlled by Meena Bhandari, according to investigators.

Bhandari used defrauded money to purchase a new Porsche for £126,000, footage of which he filmed himself fawning over, expressing he 'can't stop smiling.' Investigators also found that funds were used for kitchen refurbishments and extensive home improvements on the property he shared with Meena. Bank records revealed hundreds of thousands of pounds spent on luxury watches, jewelry, several vehicles including an Audi A5 and a Land Rover Discovery, and worldwide travel packages.

Communications between Bhandari and Morris revealed their involvement in the deception. In one message, Morris asked Bhandari, 'What was it Jerry Maguire shouted… show me the money!!!!!!!!' Another message showed Morris asking Bhandari for a link to a hospital to 'blackmail a supplier.'

Meena Bhandari was charged with money laundering, with investigators finding she was aware the funds originated from fraudulent activity. Payments were made to repay a debt owed by her.

All three defendants were arrested in February 2023 and subsequently convicted of fraud by false representation and money laundering following a five-week trial at Leicester Crown Court in July.

Paul Boniface from the National Crime Agency stated that the sentences recognize the selfish actions that caused far-reaching effects beyond the financial losses to legitimate businesses. He added that the agency will continue to target fraudsters causing significant harm to the economy.