School Governor Sentenced After PPE Scam Diverted Millions Into Luxury Cars and Property

Craig Morris, a former school governor, has been sentenced to three years and nine months in prison for his role in a multi-million-pound fraud involving personal protective equipment during the Covid-19 pandemic.

Morris, 43, from Lytham St Annes in Lancashire, worked alongside businessman Jogesh Bhandari, 59, of Loughborough, in a network of companies established in 2020 to trade millions of boxes of nitrile gloves.

Prosecutors told Northampton Crown Court that the businesses had neither the capacity nor the intention to fulfil several of the contracts they secured.

Companies Used to Pursue PPE Deals

The court heard that Morris and Bhandari conspired during 2020 and 2021 to defraud two medical companies, one based in the United States and another in Germany.

Bhandari was described as the main organiser, while Morris was said to have played a “subsidiary but significant” role by assisting with sales, logistics and representations made on behalf of the companies.

Investigators found that large sums paid into accounts connected to the deals were quickly transferred elsewhere rather than being used to purchase or deliver the promised protective equipment.

Millions Paid Into Accounts

One of the first alleged frauds involved an agreement for Bhandari to supply 12 million boxes of disposable nitrile gloves to a company known as Med18.

Prosecutor Michael Bisgrove said American attorney Frank Labruzzo assisted by providing what was presented as an escrow service.

The arrangement was supposed to keep money secure until the terms of the agreement had been fulfilled.

Instead, funds paid into the account were transferred almost immediately to Labruzzo, Bhandari and other companies.

In another transaction the following month, Bhandari received a further $2.7 million.

Almost $500,000 was subsequently withdrawn to settle debts belonging to Bhandari and his wife, Meena.

Fake Documents Used to Build Trust

The court heard that Bhandari attempted to persuade potential suppliers that his companies were major players in the international PPE market.

Among the documents sent to prospective business partners were forged bank statements claiming balances of as much as $125 million, together with false references.

Morris was also said to have provided references used to support the businesses’ claims.

Prosecutors said the companies actually had only about $3,000 in their accounts despite their claims of having access to millions of dollars.

US Hospital Order Never Delivered

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

The gloves were never delivered.

The prosecution said the money was instead diverted for the defendants’ own purposes.

German Supplier Targeted in Later Deal

A further fraud was carried out later in 2021 against a German supplier.

Bhandari allegedly presented himself as a major PPE trader with access to hundreds of millions of dollars and expressed an interest in purchasing more than $1 billion worth of gloves.

Labruzzo supplied a fraudulent letter claiming Bhandari had deposited $35 million as security for the first delivery.

The German company was subsequently persuaded to pay $1.35 million towards air freight. The money was transferred into a business account controlled by Bhandari’s wife.

Morris Received £235,000

The court heard that £200,000 from the proceeds was paid to Morris, who used the money to purchase a house.

He also received seven monthly payments of £5,000, described as consultancy fees, from Bhandari.

Prosecutors said Bhandari’s wife was also involved in transactions connected to the proceeds, including payments made to settle debts.

Meena Bhandari was later convicted of money laundering following the trial.

Luxury Cars and Watches Bought

The prosecution said Bhandari spent substantial sums from the fraud on luxury goods, vehicles and travel.

Among the purchases was a new red Porsche, which cost £126,000.

He also bought vehicles including an Audi A5, a Land Rover Discovery and a Volkswagen Golf, as well as Rolex and other luxury watches.

Investigators also recovered videos showing Bhandari admiring the Porsche.

In one recording, he described the car as “amazing” before getting inside and saying he could not stop smiling.

Records also showed spending on international travel.

Messages Revealed the Pair’s Discussions

More than 47,000 WhatsApp messages and emails were recovered as part of the investigation.

In one message, Morris referred to widespread reports about PPE shortages and wrote: “Let’s clean up!! Milk it… fill ya boots”.

Bhandari responded positively, describing the operation as a matter of teamwork and everyone making money.

In another exchange, Bhandari sent Morris a photograph of a Rolls-Royce and said they would need to keep going if he wanted to buy one.

Judge Condemns Exploitation of PPE Market

Judge William Harbage KC said the frauds had been carried out over a sustained period and exploited the PPE market at a time of major international concern.

He said the public had been required to make sacrifices and work together during the pandemic, while some individuals sought to exploit the circumstances for financial gain.

The judge said he was satisfied that Bhandari and Morris fell into that category and described the frauds as sophisticated, involving significant international activity.

Morris Had Joined Fraud Enthusiastically

The prosecution said Morris had become involved enthusiastically and provided assistance with the sales and logistical side of the operation.

His barrister, Philip Plant, told the court that Morris was a father of two teenage boys and had otherwise worked hard and contributed to society.

The defence submitted 19 references in support of Morris and told the court that the prospect of imprisonment was particularly difficult for him, his wife and his children.

Meena Bhandari Given Suspended Sentence

Meena Bhandari, who was convicted of money laundering, was sentenced to two years in prison, suspended for two years.

She was also ordered to complete 250 hours of unpaid community work.

Her barrister, Robin Howat, said her career as a pharmacist had been “totally destroyed by these proceedings” and that her marriage to Bhandari had been damaged by evidence presented during the trial.

Bhandari Absent From Sentencing

Bhandari did not attend his sentencing hearing, telling the court that medical reasons prevented him from appearing after having a pacemaker fitted the previous month.

Judge Harbage issued a warrant for his arrest and adjourned his sentencing hearing until October 16.

Labruzzo and Cynthia Caronna, another American citizen involved in the scheme, had already been sentenced in the United States for their respective roles.