LONDON, July 22: An Indian-origin couple has been convicted by a UK court for orchestrating a sophisticated fraud involving the supply of personal protective equipment (PPE) during the COVID-19 pandemic, with investigators revealing that millions of dollars received from victims were diverted into luxury purchases and personal expenses instead of fulfilling medical supply contracts.
Jogesh Bhandari, 59, and his wife Meenakashi (Meena) Bhandari, 58, were found guilty on multiple counts of fraud and money laundering following a five-week trial at Leicester Crown Court. Craig Morris, 43, who acted on behalf of the couple’s company in several fraudulent transactions carried out between 2020 and 2021, was also convicted. All three are scheduled to be sentenced on August 21.
The UK’s National Crime Agency (NCA), which led the investigation, said the accused exploited the unprecedented global demand for PPE at the height of the coronavirus pandemic by falsely claiming they could supply millions of nitrile gloves and other protective equipment.
Paul Boniface, Operations Manager at the NCA, said the pandemic created an environment in which criminals sought to profit from businesses desperately searching for life saving medical supplies.
He said the fraudsters took advantage of the worldwide emergency to enrich themselves while genuine organisations struggled to obtain essential protective equipment.
According to investigators, the proceeds from the scam were used to fund an extravagant lifestyle, including expensive home renovations, luxury vehicles, designer watches, jewellery and international holidays.
The investigation found that Jogesh Bhandari established and controlled a company in 2020 that claimed to trade nitrile gloves. He allegedly worked with Frank Labruzzo, a former Assistant Attorney General at the Louisiana State Department of Justice in the United States, who provided a fraudulent escrow service used to reassure buyers.
Authorities explained that instead of safely holding clients’ payments until deliveries were completed, the escrow account was used to immediately transfer money to Bhandari, Labruzzo and other associated companies.
The first fraudulent transaction took place in November 2020, when Bhandari agreed to supply 12 million boxes of nitrile gloves. After the purchasing company deposited funds into the escrow account, the money was quickly distributed despite no PPE being delivered.
A second deal followed the next month, during which another 2.7 million US dollars was received. Investigators found that nearly 500,000 US dollars from those funds was used to clear personal debts belonging to Jogesh and Meena Bhandari.
The NCA further alleged that Bhandari relied on forged financial documents, including fake bank statements showing balances of up to 125 million US dollars, along with fabricated letters of financial assurance, to convince suppliers and customers that he possessed substantial financial resources.
In early 2021, he received more than 3.18 million US dollars for an order of nitrile gloves intended for hospitals in the United States. The promised shipment, however, was never delivered.
Later that year, Bhandari persuaded another supplier that he was capable of executing a PPE contract worth 1.8 billion US dollars by falsely claiming access to hundreds of millions of dollars in funding.
As part of that transaction, Labruzzo allegedly issued a fraudulent letter claiming Bhandari had deposited 35 million US dollars as security for the agreement. Based on those assurances, the supplier transferred 1.35 million US dollars for the first planned deliveries.
Investigators discovered that the money was deposited directly into a business account controlled by Meena Bhandari. The funds were subsequently used to purchase a Porsche and finance extensive kitchen renovations and other improvements to the couple’s home.
Financial records also showed substantial spending on Rolex watches, jewellery, premium vehicles including an Audi A5, Land Rover Discovery and Volkswagen Golf, as well as luxury overseas travel. The NCA said none of the money was used to procure or deliver PPE as promised.
Boniface said such fraud extends beyond financial losses, as it deprives legitimate organisations of essential medical equipment during public health emergencies and undermines confidence in supply chains.
He added that the National Crime Agency remains committed to identifying and prosecuting fraudsters whose actions cause serious economic harm and exploit vulnerable businesses during times of crisis.
Frank Labruzzo, along with another co-accused, has already been convicted in the United States in connection with the international PPE fraud operation.