Both were found guilty in July but sentenced in October
An Indian-origin businessman has been sentenced to eight years in prison in the UK for defrauding companies through fake personal protective equipment (PPE) supply deals during the Covid-19 pandemic and using the money to fund a lavish lifestyle, including luxury cars, expensive watches and home renovations.Jogesh Bhandari, 59, from Loughborough, was sentenced at Leicester Crown Court on October 16 after failing to attend two earlier sentencing hearings, citing health issues. A judge subsequently ordered his arrest, according to Britain's National Crime Agency (NCA).Meanwhile, his wife, Meenakshi (Meena) Bhandari, and business associate Craig Morris, 43, were sentenced on October 7. Meena received a two-year prison sentence, suspended for two years, along with 250 hours of unpaid community work, while Morris was jailed for three years and nine months.The three were convicted of fraud and money laundering offences following a five-week trial in July.Investigators found that Bhandari and Morris had set up a company in 2020 to trade nitrile gloves, which were in high demand during the pandemic. They worked with Frank Labruzzo, a US Assistant Attorney General at the Louisiana State Department of Justice, who provided a fraudulent escrow service.The scheme involved securing large PPE contracts and diverting payments before the promised supplies were delivered.
In November 2020, Bhandari agreed to supply 12 million boxes of gloves, but the money deposited into an escrow account was instead transferred to him, Labruzzo and other companies.The following month, he received another $2.7 million, withdrawing $500,000 almost immediately to settle debts belonging to him and his wife.In early 2021, Bhandari received more than $3.18 million for gloves intended for US hospitals, but the supplies never arrived.
Another deal brought in $1.35 million, which was deposited directly into a business account controlled by Meena.Rather than fulfilling the contracts, the couple spent substantial amounts on personal expenses. According to the NCA, £126,000 went towards a new Porsche, while £200,000 was transferred to Morris.Bank records also revealed purchases of Rolex watches, jewellery and several vehicles, including an Audi A5, a Land Rover Discovery and a Volkswagen Golf.
The couple also used the funds for home improvements, overseas holidays and repaying personal debts.The NCA investigation uncovered more than 47,000 messages exchanged between Bhandari and Morris, revealing how they coordinated their fraudulent activities.In one exchange, Bhandari wrote, "I need you to help me out with a scam…you need to pose as a previous satisfied customer". Morris responded, "I’ll do what I can to help."Paul Boniface, operations manager at the NCA, said the defendants had exploited legitimate businesses at a time when healthcare facilities were struggling to obtain essential protective equipment."While Bhandari was picking up his brand new luxury car and talking about how he couldn’t stop smiling, healthcare facilities had not received the vital PPE they needed at a time when demand was exponential and companies were millions of dollars out of pocket," he said.The agency said the fraud had consequences beyond the financial losses suffered by businesses, as the promised equipment failed to reach healthcare providers during the pandemic.