Two conmen who exploited PPE shortages during the Covid pandemic have been convicted of fraud and money laundering after using the proceeds to buy luxury cars, watches, and holidays. Jogesh Bhandari, 59, and Craig Morris, 43, were found guilty of fraud by false representation and money laundering by the National Crime Agency (NCA) for claiming they could supply millions of boxes of nitrile gloves.
WhatsApp messages reveal intent to 'milk' shortages
Among 47,000 WhatsApp messages between the pair, 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.'
Lavish spending on luxury goods and vehicles
Bank records show 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 was used for a kitchen refurbishment. Some money was used to repay a debt owed by his wife, who was also convicted of money laundering.
Fraudulent deals and escrow service
The NCA said Bhandari owned and controlled a company set up in 2020 to buy and sell nitrile gloves, while Morris helped in several 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. Bhandari's fraud began in November 2020 when he agreed a deal to provide 12 million boxes of gloves, and the company paid into the escrow account. Rather than money remaining in the account until the deal was complete, it was immediately paid to Labruzzo and Bhandari.
Millions diverted from US hospitals
A month later, Bhandari received a further 2.7 million dollars into the account, and almost 500,000 dollars was withdrawn to pay off his and his wife's debts. In early 2021, he was paid more than 3.18 million dollars 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 dollars straight into his business account, before he sent £200,000 to Morris and bought himself a brand 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 men 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.
NCA statement on exploitation
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.'
