Highlights:
An Indian-origin couple and their associate have been convicted in the UK for a multi-million-pound Covid-19 personal protective equipment (PPE) fraud, with investigators saying the proceeds funded luxury cars, Rolex watches, holidays and expensive home renovations.
Jogesh Bhandari, 59, and his wife Meenakashi (Meena) Bhandari, 58, were found guilty following a five-week trial at Leicester Crown Court. Craig Morris, 43, who represented their company in several fraudulent PPE deals, was also convicted. All three are due to be sentenced on 21 August.
The UK’s National Crime Agency (NCA) said the trio falsely claimed they could supply millions of boxes of nitrile gloves during the pandemic, when hospitals and businesses worldwide were struggling to secure protective equipment.
“The Covid-19 pandemic was a time of uncertainty for the world, and the increased need for PPE equipment was sudden,” said Paul Boniface, operations manager at the NCA.
He said the crisis gave fraudsters an opportunity to exploit businesses and profit from the soaring demand for protective equipment.
Millions collected, gloves never delivered
According to the NCA, the first fraudulent deal was struck in November 2020 for 12 million boxes of gloves. Funds that were supposed to be held securely in escrow were instead transferred to Bhandari, Labruzzo and other linked companies.
A further $2.7 million was deposited the following month, with nearly $500,000 allegedly used to clear the Bhandaris’ personal debts.
Investigators said Bhandari used forged bank statements showing balances of up to $125 million and fraudulent letters to persuade suppliers that he could fulfil large PPE contracts.
In early 2021, he received more than $3.18 million for gloves intended for US hospitals, but the shipment never arrived.
The scheme also involved a proposed $1.8 billion PPE contract. A supplier allegedly paid $1.35 million after receiving a fraudulent letter claiming $35 million had been deposited as security.
Porsche, Rolexes and luxury spending
Rather than purchasing protective equipment, the proceeds funded an extravagant lifestyle, investigators said. The couple spent money on a £126,000 Porsche, Rolex watches, jewellery, luxury holidays and home improvements. Other vehicles included an Audi A5, Land Rover Discovery and Volkswagen Golf.
The BBC reported that investigators recovered around 47,000 WhatsApp messages between Bhandari and Morris. In one exchange, 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.”
The three defendants were arrested in February 2023. The NCA said the fraud caused harm beyond financial losses by diverting essential equipment from legitimate organisations.
