COVID-19 Fraudsters Used Stolen Millions for Lavish Lifestyles, Jailed

Two men have been sentenced to prison for defrauding millions of pounds from companies needing personal protective equipment (PPE) during the COVID-19 pandemic. Jogesh Bhandari, 59, and Craig Morris, 43, were convicted of fraud and money laundering. Bhandari's wife, Meenakshi Bhandari, 64, received a suspended sentence for her involvement.

Bhandari and Morris established a company in 2020 to trade nitrile gloves at the peak of the pandemic but failed to fulfill multi-million-pound contracts. Instead, they collaborated with Frank Labruzzo, an Assistant Attorney General in the Louisiana State Department of Justice, who provided a fraudulent escrow service. This service was intended to hold funds until contractual agreements were met, but it was used to facilitate the fraud.

In November 2020, Bhandari secured a deal for 12 million boxes of gloves. Upon receipt of funds into the escrow account, the money was immediately transferred and disbursed to Bhandari, Labruzzo, and other entities. Bhandari subsequently entered into a second agreement, receiving an additional $2.7 million, from which he immediately withdrew $500,000 to settle personal debts.

Early in 2021, Bhandari received over $3.18 million for intended glove deliveries to U.S. hospitals. A payment of $1.35 million for the first two shipments was directed to a business account controlled by his wife. Bhandari transferred £200,000 to Morris and purchased a new Porsche for £126,000. He was captured on video expressing delight over the new luxury sports car.

Investigators uncovered over 47,000 messages exchanged between Morris and Bhandari. In one message, Bhandari solicited Morris's help in a scheme, instructing him to impersonate a satisfied customer. Morris responded, stating he would assist. Morris also referenced the movie Jerry Maguire, asking Bhandari, "What was it Jerry Maguire shouted… show me the money!!!!!!!!"

Evidence revealed that some of the defrauded funds were used for extensive home renovations on the property shared by Bhandari and Meenakshi Bhandari. Bank records indicated that hundreds of thousands of pounds were spent on Rolexes and other luxury watches, jewelry, vehicles including an Audi A5, Land Rover Discovery, and VW Golf, and international travel packages. Meenakshi Bhandari was aware of her husband's fraudulent activities and was charged with money laundering after payments were made to repay a debt owed by her.

Morris was expected to receive regular payments of £5,000 from Bhandari, but their association ended in late 2021. The three defendants were arrested in February 2023 and subsequently charged. Following a five-week trial at Leicester Crown Court, they were convicted in July.

Bhandari failed to appear for sentencing on two occasions, citing health issues, which led to a bench warrant for his arrest. He was ultimately sentenced to eight years in prison. Morris received a sentence of three years and nine months. Meenakshi Bhandari was given a two-year prison sentence, suspended for two years, along with a requirement to complete 250 hours of unpaid work.

Paul Boniface of the National Crime Agency stated that the sentences reflect the significant harm caused by the defendants' selfish actions, impacting legitimate businesses and causing losses beyond the immediate financial implications. He added that the agency would continue to target fraudsters causing economic damage.