Two conmen who exploited PPE shortages during the Covid-19 pandemic spent the proceeds on luxury cars, Rolex watches, and holidays, according to the National Crime Agency (NCA). Jogesh Bhandari, 59, and Craig Morris, 43, were convicted of money laundering and fraud by false representation after claiming they could supply millions of boxes of nitrile gloves.
WhatsApp messages revealed intent to 'milk' shortages
Among 47,000 WhatsApp messages between Bhandari and Morris, Morris wrote: 'All over the news is all about ppe shortage. Let’s clean up!! Milk it… fill ya boots.' Bhandari replied: '(Thumbs up) it’s about a good teamwork and EVERYONE making money.' In another message, Bhandari sent an image of a Rolls Royce to Morris and said: 'But if I want one of these then we need to keep going.'
Luxury purchases traced through bank records
Bank records showed that Bhandari and his wife, Meenakashi Bhandari, 58, used the money to buy Rolexes, jewellery, holiday packages, and cars including an Audi A5, a Land Rover Discovery, and a VW Golf. Bhandari spent £126,000 on a new Porsche, while other cash funded a kitchen refurbishment. Some money repaid a debt owed by his wife, who was also convicted of money laundering.
Fraudulent deals with US official
The NCA said Bhandari owned and controlled a company set up in 2020 to buy and sell nitrile gloves, while Morris assisted in fraudulent deals in 2020 and 2021. Bhandari worked with Frank Labruzzo, a US assistant attorney general at the Louisiana State Department of Justice, who provided a fraudulent escrow service. In November 2020, Bhandari agreed to provide 12 million boxes of gloves, with payment going into the escrow account. Instead of holding funds until conditions were met, the money was immediately paid to Labruzzo and Bhandari.
A month later, Bhandari received a further $2.7 million into the account, and almost $500,000 was withdrawn to pay off his and his wife's debts. In early 2021, he was paid over $3.18 million for an order of nitrile gloves to be sent to US hospitals that were never delivered. In his final deal, Bhandari received $1.35 million straight into his business account, then sent £200,000 to Morris and bought a new Porsche.
Arrests and conviction
All three defendants were arrested in February 2023. Morris, of All Saints Road in Lytham St Annes, Lancashire, had expected regular £5,000 payments from Bhandari before the two fell out at the end of 2021. Bhandari, his wife, and Morris were convicted on Wednesday after a five-week trial at Leicester Crown Court and will be sentenced on August 21.
Paul Boniface, operations manager at the NCA, said: 'All of this activity occurred at the height of the pandemic where the demand for PPE went through the roof. Bhandari and his co-conspirators capitalised on these vulnerabilities by exploiting people and businesses for their own financial gain, paying for lavish lifestyles of luxury cars and significant home improvements. Fraud like this diverts essential equipment away from genuine organisations and the effects are far reaching, beyond immediate losses for the legitimate businesses involved. The NCA will continue to target fraudsters like these who cause significant harm to the UK economy.'
