Two individuals have been convicted of money laundering and fraud by false representation after falsely claiming they could supply millions of boxes of nitrile gloves during the pandemic.
Jogesh Bhandari, 59, established a company in 2020 and agreed to a deal that November to provide 12 million boxes of gloves to a buyer.
The buyer placed funds into an escrow account intended to hold payment until contractual conditions were met. Instead, the money was diverted immediately to Bhandari and an overseas accomplice who had helped set up the fraudulent account.
Bhandari received $2.7 million within a month, using $500,000 to clear debts owed by himself and his wife, Meenakashi. In early 2021, he took another $3.18 million from a hospital for gloves that were never delivered.
A final transaction saw Bhandari receive $1.35 million and transfer £200,000 to Craig Morris, 43, of Lytham St Annes. The pair later fell out as the scheme collapsed at the end of 2021.
The defendants used illicit proceeds to fund an extravagant lifestyle. Purchases included luxury watches, jewellery, holiday packages, home renovations, and vehicles such as an Audi A5, Land Rover Discovery, Volkswagen Golf, and a £126,000 Porsche.
All three were arrested in February 2023 and found guilty following a five-week trial at Leicester Crown Court. Sentencing for money laundering and fraud by false representation is scheduled for August 21.
Investigators noted the offences took place when demand for personal protective equipment had surged nationwide. The fraud diverted critical supplies from legitimate organisations and inflicted losses well beyond the immediate victims.
