Indian-origin couple jailed in $1.8-billion fake Covid protective gear case

A UK court sentenced Jogesh and Meena Bhandari for Covid-era PPE fraud and money laundering. The proceeds funded luxury purchases while businesses lost millions and healthcare facilities lacked supplies.

In Short

• Jogesh Bhandari jailed for 8 years, wife gets suspended sentence
• Fraud proceeds spent on luxury cars, watches and holidays
• UK National Crime Agency vows to target similar frauds

An Indian-origin couple has been sentenced in the United Kingdom for defrauding businesses by falsely claiming they could supply personal protective equipment (PPE) during the Covid-19 pandemic and laundering the proceeds to fund a lavish lifestyle.

Jogesh Bhandari, 59, and his wife, Meenakashi (Meena) Bhandari, 58, were convicted of multiple counts of fraud and money laundering following a five-week trial at Leicester Crown Court in July.

Jogesh was sentenced to eight years in prison last week after failing to appear for his sentencing hearing, citing health issues.

His wife received a two-year suspended sentence and was ordered to complete 250 hours of unpaid community work on October 7.

Craig Morris, 43, who represented the couple’s company in several fraudulent transactions in 2020 and 2021, was sentenced to three years and nine months in prison alongside Meena earlier this month.

The UK's National Crime Agency (NCA), which investigated the case, said the group exploited the urgent demand for PPE during the pandemic to defraud legitimate businesses.

The proceeds were used to purchase luxury vehicles, watches, jewellery and holidays, as well as to renovate the couple’s home.

“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,” said Paul Boniface, operations manager at the NCA.

He said that while Bhandari was collecting a new luxury car and celebrating his purchase, healthcare facilities were left without essential PPE supplies, while businesses suffered losses worth millions.

FAKE PPE DEALS WORTH MILLIONS

According to the NCA investigation, Jogesh Bhandari owned and controlled a company established in 2020 to trade nitrile gloves during the pandemic.

In early 2021, he received more than $3.18 million for an order of nitrile gloves intended for hospitals in the United States.

The gloves were never delivered, the agency said.

In another deal in late 2021, Bhandari persuaded a supplier that he was a major player in the PPE industry with access to hundreds of millions of dollars. The resulting agreement was worth $1.8 billion.

The NCA said a fraudulent letter was provided to indicate that Bhandari had deposited $35 million as security for the first delivery.

The company subsequently paid $1.35 million for the first two planned shipments.

However, the money was transferred directly into a business account controlled by Meena Bhandari rather than being used for the intended PPE supplies, investigators found.

LUXURY CARS, WATCHES BOUGHT WITH FRAUD PROCEEDS

Investigators traced the money to purchases including a new Porsche and extensive renovations to the couple’s home, including kitchen improvements.

Bank records also showed spending on luxury watches, jewellery, an Audi A5, a Land Rover Discovery and a Volkswagen Golf.

The couple also spent hundreds of thousands of pounds on luxury travel and holiday packages, according to the NCA. The agency said none of the money was used for its intended purpose.

Boniface said the sentences reflected the wider consequences of the fraud, which extended beyond the immediate financial losses suffered by businesses to the healthcare facilities that were left without essential supplies during the pandemic.

The NCA said it would continue targeting fraudsters whose activities cause significant harm to the UK economy.

- Ends
With PTI inputs