School Governor Jailed for Role in Multi-Million Pound COVID PPE Scam
Craig Morris received over £200,000 and a monthly salary for his part in a fraud that targeted medical companies.
A school governor has been sentenced to three years and nine months in prison for his involvement in a multi-million pound fraud scheme that exploited the demand for personal protective equipment (PPE) during the COVID-19 pandemic. Craig Morris, 43, was found guilty of fraud by false representation and money laundering following a five-week trial.
Morris and his co-defendant, Jogesh Bhandari, established a network of companies in 2020 to trade millions of boxes of nitrile gloves. Prosecutors stated that the pair lacked the capacity and intention to fulfill these contracts. Instead, when unsuspecting firms paid for the equipment, the funds were immediately withdrawn and directed to Bhandari's personal accounts and those of his wife, Meena Bhandari.
Investigators determined that the money paid to Bhandari, the scheme's "prime mover," was not used for its intended purpose but to finance his extravagant lifestyle. Bhandari, 59, reportedly spent the illicit gains on luxury cars, holidays, and watches. In one recovered video, Bhandari is seen expressing delight over a new sports car purchased with the fraudulent funds.
Morris played a "subsidiary but significant" role, providing support for sales and logistics, and had "joined it enthusiastically," according to court testimony. He received seven monthly "consultancy" payments of £5,000 from Bhandari, along with a £200,000 lump sum used to purchase a house. Morris, from Lytham St Annes, Lancashire, made representations on behalf of the company in several fraudulent deals.
During the trial, prosecutors outlined how the defendants defrauded companies of more than $4.5 million. The scheme involved defrauding two medical companies, one in the US and another in Germany, between 2020 and 2021. Bhandari also enlisted the assistance of two American citizens, Frank Labruzzo, an attorney in the Louisiana Attorney General's Office, and Cynthia Caronna.
One of the scams involved an agreement to supply 12 million boxes of nitrile gloves to a company called Med18. Labruzzo allegedly facilitated this by providing a fake escrow service, allowing funds to be moved immediately after being deposited. In a subsequent deal, Bhandari received $2.7 million and withdrew nearly $500,000 to settle personal debts. He also submitted forged documents, including bank statements showing balances of up to $125 million and false references, to deceive potential suppliers.
In early 2021, Bhandari received over $3.18 million for an order of nitrile gloves intended for US hospitals, but the shipment never occurred. Later in 2021, he duped a German supplier into believing he was a major player in the PPE industry with access to hundreds of millions of dollars, claiming an interest in purchasing over $1 billion worth of gloves. Labruzzo reportedly provided a fraudulent letter indicating Bhandari had deposited $35 million as security for the first delivery. The German firm paid $1.35 million upfront for air freight, which went directly into Bhandari's business account.
Morris received £200,000 from the proceeds, while Bhandari spent £126,000 on a red Porsche and also purchased Rolexes and other luxury watches, an Audi A5, a Land Rover Discovery, and a VW Golf. Bank records also showed extensive international travel.
Messages exchanged between Morris and Bhandari revealed their intentions. Morris wrote, "All over the news is all about PPE shortage. Let's clean up!! Milk it... fill ya boots." Bhandari responded with a thumbs-up emoji and stated, "It's about good teamwork and EVERYONE making money." In another message, Bhandari shared an image of a Rolls-Royce, telling Morris, "But if I want one of these (a Rolls Royce) then we need to keep going."
Judge William Harbage KC remarked that the public had to "make sacrifices and pull together" during the pandemic, but "a few people who sought to exploit the situation and make money for themselves, motivated by greed." He described the frauds as sophisticated and involving significant international efforts.
Meena Bhandari was convicted of money laundering and received a two-year suspended sentence, along with a requirement to complete 250 hours of community service. Bhandari himself did not appear for his sentencing hearing, citing medical reasons, and a warrant has been issued for his arrest, with his case adjourned for sentencing on October 16. Labruzzo and Caronna have already been sentenced in the United States for their roles in the scheme.