Looking at the camera, Bhandari said he "can't stop smiling"
Two fraudsters who stole millions of pounds from companies supplying personal protective equipment (PPE) during the Covid pandemic joked about their scams while spending the money on luxury cars, Rolex watches, expensive jewellery and lavish holidays.
Jogesh Bhandari and Craig Morris were convicted of fraud and money laundering after failing to fulfil multi-million-pound contracts for nitrile gloves intended for US hospitals and other healthcare facilities.
Bhandari was sentenced to eight years in prison, while Morris was jailed for three years and nine months.
Bhandari’s wife, Meenakshi (Meena) Bhandari, received a two-year prison sentence, suspended for two years, for her role in the fraud.
The National Crime Agency (NCA) investigated the complex scheme, which saw the defendants exploit unprecedented demand for PPE during the pandemic to defraud legitimate businesses of millions of dollars.
Bhandari and Morris launched a company in 2020 to buy and sell nitrile gloves, but instead of delivering the contracted supplies, they diverted the money for their own benefit.
They worked with Frank Labruzzo, an attorney in the Louisiana Attorney General’s Office, who provided a fraudulent escrow service.
An escrow account acts as a holding point for funds until the conditions of an agreement have been met. In this case, however, money paid into the account was quickly transferred to Bhandari, Labruzzo and other companies rather than being used to fulfil the orders.
In November 2020, Bhandari agreed to supply 12 million boxes of gloves. Once the money arrived in the escrow account, it was moved and paid out to the individuals and companies involved.
Bhandari subsequently secured a second deal, receiving a further $2.7 million into the account. He almost immediately withdrew $500,000 to pay off debts owed by himself and his wife.
In early 2021, Bhandari received more than $3.18 million for gloves intended for US hospitals. The company paid $1.35 million for the first two planned shipments, but the money went directly into a business account controlled by his wife.
Bhandari also transferred £200,000 to Morris before spending £126,000 on a brand-new Porsche.
Footage filmed during the fraud showed Bhandari unveiling the red luxury sports car he purchased with the proceeds.
Looking at the camera, Bhandari said he “can’t stop smiling” and described the car as “amazing”.
In stark contrast, police body-camera footage later captured his early-morning arrest.
Messages exchanged between Bhandari and Morris provided further evidence of how the pair operated. Investigators uncovered more than 47,000 messages shared between the two men during the fraud.
In one exchange, Bhandari told Morris: “I need you to help me out with a scam…you need to pose as a previous satisfied customer.”
Morris replied: “I’ll do what I can to help.”
In another message, Morris referenced the 1996 film Jerry Maguire, asking Bhandari:
“What was it Jerry Maguire shouted… show me the money!!!!!!!!”
A separate exchange revealed Morris asking Bhandari:
“Can you send me that link for the hospital you’re building in SA. I’m trying to blackmail a supplier [laugh emoji].”
While the men joked about their activities, the money was being spent on a range of expensive purchases and improvements to their lifestyles.
Investigators found that some of the funds had been used to refurbish the kitchen and carry out extensive home improvements at the property Bhandari shared with his wife.
Bank records also showed the Bhandaris spent hundreds of thousands of pounds on Rolex watches and other luxury timepieces, expensive jewellery, and several vehicles, including an Audi A5, a Land Rover Discovery and a Volkswagen Golf.
The couple also paid for luxury holidays and worldwide travel packages, while some of the money was used to repay debts owed to family and friends.
None of the funds was used for its intended purpose of securing and delivering PPE.
Payments were also made to an individual identified as ‘Rodi’ to repay a debt owed by Meena Bhandari. Following the NCA investigation, she was charged with money laundering after evidence showed she knew the funds being used came from her husband’s fraudulent activities.
Morris had been due to receive regular payments of £5,000 from Bhandari, but the pair fell out towards the end of 2021, bringing the payments to an end.
All three defendants were arrested in February 2023 and charged with several counts of fraud by false representation and money laundering. They were convicted at Leicester Crown Court following a five-week trial in July.
Bhandari failed to appear in court on two separate occasions for sentencing, citing health issues.
A judge subsequently ordered his arrest on a bench warrant, and he appeared in court on Friday to receive his eight-year prison sentence.
Meena Bhandari and Morris were sentenced on October 7. In addition to her suspended prison term, Meena was ordered to complete 250 hours of unpaid work.
Paul Boniface, from the National Crime Agency, said: “These defendants took an opportunity to target legitimate businesses and line their own pockets for a lavish lifestyle during a pandemic that caused uncertainty around the world.
“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.
“These sentences recognise that their selfish actions caused far-reaching effects, far beyond the immediate losses for the legitimate businesses involved.
“The NCA will continue to target fraudsters like these who cause significant harm to the UK economy.”
