UK PPE fraud ring convicted over luxury spending and false glove deals

A PPE fraud ring has been convicted after a National Crime Agency investigation into false nitrile glove deals and fraudulent escrow arrangements linked to the Covid-19 pandemic. The case involved Jogesh Bhandari, 59, of Loughborough, Craig Morris, 43, of Lytham St Annes in Lancashire, and Frank Labruzzo, a US Assistant Attorney General at the Louisiana State Department of Justice.

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Bhandari owned and controlled a company set up in 2020 to buy and sell nitrile gloves during the pandemic. The NCA said the company made fraudulent representations in 2020 and 2021, while Labruzzo provided a fraudulent escrow service.

An escrow account is normally used as a holding point for funds until both sides of a deal have completed their obligations. The first fraudulent activity began in November 2020, when Bhandari agreed a deal to provide 12 million boxes of gloves.

The company paid money into the escrow account, but the funds did not remain there until completion of the deal. Instead, the money was immediately moved and paid to Labruzzo, Bhandari and other companies.

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A second deal a month later brought a further $2.7m into the account. Almost $500,000 was then withdrawn to pay off Bhandari's and his wife's debts.

The NCA said Bhandari also sent forged documents to potential suppliers, including bank statements showing up to $125m and letters of attestation designed to persuade businesses to trade with him. In early 2021, Bhandari was paid more than $3.18m for an order of nitrile gloves to be delivered to US hospitals, but the gloves were never delivered.

In a later deal in late 2021, he persuaded a supplier he was a major PPE player with access to hundreds of millions of dollars. The company agreed a deal worth $1.8bn, and Labruzzo produced a fraudulent letter stating that Bhandari had deposited $35m as security against the first delivery.

The company then paid $1.35m for the first two planned shipments. In the final deal, Bhandari received the $1.35m straight into his business account, which was controlled by his wife, Meenakashi (Meena) Bhandari, 58.

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From that account he sent GBP 200,000 to Morris and bought himself a brand-new Porsche. A total of GBP 126,000 was spent on the Porsche alone.

The NCA said more than 47,000 WhatsApp messages and emails were exchanged between the defendants during the criminality. Morris told Bhandari, "All over the news is all about ppe shortage.

Milk it... fill ya boots", while Bhandari replied, "it's about a good teamwork and EVERYONE making money". Bhandari also sent Morris an image of a Rolls Royce and said that if he wanted one, they would need to keep going.

Money was also spent on a kitchen refurbishment, extensive home improvements, Rolexes and other luxury watches, jewellery, cars including an Audi A5, a Land Rover Discovery and a VW Golf, and worldwide luxury travel and holiday packages.

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