A fraudster who swindled medical companies out of millions through fake PPE deals during the Covid-19 pandemic has been jailed.
Craig Morris, 43, along with his boss Jogesh Bhandari, 60, blew hundreds of thousands of pounds on luxury cars, watches, holidays and property after falsely claiming they could supply millions of boxes of nitrile gloves to clients in the United States and Germany.
Morris and Bhandari were convicted of money laundering and conspiracy to commit fraud by false representation following a five-week trial at Leicester Crown Court in July.
Sentencing at Northampton Crown Court
On Wednesday, Morris was handed a sentence of three years and nine months at Northampton Crown Court, while Meenakshi Bhandari, 58, received a two-year prison term, suspended for two years, along with 250 hours of unpaid work and 15 days of rehabilitation activity.
The court heard that Jogesh Bhandari failed to attend the hearing after informing his solicitor he was taking a "very extreme painkiller" following a pacemaker procedure the previous week and was unable to travel to Northampton. Judge William Harbage KC went ahead with sentencing the other two defendants in his absence, declaring "the case cannot just be put off and put off at Mr Bhandari's will".
The judge noted there was "no medical evidence" to sufficiently account for Jogesh Bhandari's non-appearance and confirmed a bench warrant would be issued for his arrest.
Fraudulent deals through Banton
Prosecutor Michael Bisgrove told the court that Jogesh Bhandari was the "driving force and the instigator" of the criminal activity, while Morris was "very much working for" him.
He said: "The offences took place during the Covid-19 pandemic at a time when there was a desperate shortage of personal protective equipment (PPE)."
The court heard Jogesh Bhandari and Morris carried out dishonest deals through a firm called Banton. They defrauded American firm Med18 and German company MedTech by issuing contracts for kit they didn't have.
Mr Bisgrove said: "In the course of the fraud, they took millions of pounds which they used for their own benefit – to buy cars, luxury goods and property."
Motivated by greed
Jogesh Bhandari fraudulently obtained and kept hold of £1.75 million, while Meenakshi Bhandari laundered sums amounting to £960,000, prosecutors said. Bhandari had been operating with Frank Labruzzo, a US assistant attorney general at the Louisiana State Department of Justice, who set up a bogus escrow service.
The court also heard that Labruzzo and another accomplice in the operation have already been convicted and jailed in America. Jogesh Bhandari is scheduled to be sentenced on October 16.
In passing sentence, Judge Harbage observed that the pandemic was a time when "all of us had to make sacrifices and pull together for the good of society as a whole". He continued: "There were a few people though who sought to exploit that to make money for themselves, motivated by greed. I'm satisfied Jogesh Bhandari and Craig Morris fall into that category."
