3 Arrested Over $1.9 Million Fraud During Covid 19

According to reports, three people have been detained as part of an international investigation into PPE $1.9 million fraud that cost the UK millions of pounds.

A man in his 50s, his wife, and a 39-year-old man were detained following searches of two homes in Loughborough, Leicestershire, and a third in Lytham St. Annes, Lancashire, on Wednesday.

Together, they are believed to have committed a $1.9 million fraud on businesses worldwide. During the property searches, several expensive items, including a car, jewellry, watches, and appliances as well as proof of sizeable cash purchases, were retrieved.

The National Crime Agency (NCA) reported that the man in his 50s is suspected to have established a UK firm specifically to carry out a fraudulent operation that would allow him to profit from shortages of personal protective equipment at the height of the coronavirus outbreak.

The third individual is thought to have assisted the plan, and his wife is suspected of aiding in the money laundering.

The three were detained on suspicion of committing advance fee fraud, which occurs when victims pay upfront for goods, services, or financial advantages that never materialize.

According to investigators, the unnamed company arranged deals worth more than $28.9 million for nitrile gloves, which are frequently used in medical settings, to be supplied to businesses in the US and Germany.

The foreign businesses reportedly paid the UK business an advance fee to cover startup costs and win contracts, but this money was transferred into a holding account managed by a different party.

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The holding account offered assurances that funds paid in would only be released upon contract conditions being met, however, the NCA stated on Wednesday that the couple is believed to have accessed and benefited from the money without fulfilling their contractual obligations.

According to Mick Pope, NCA branch commander, During the pandemic, criminal opportunists had an impact on both people and businesses.

He said, “The NCA prioritised and tackled a range of serious organized crime threats, including fraud.

“False business agreements that turn out to be fraud damage the reputation of the UK and hurt our economy. We continue to treat this as a priority area and thank Leicestershire Police for their ongoing support.

“Work is underway with law enforcement partners in the US and Germany to further this investigation.”

The NCA further stated that the three suspects were still being questioned while in custody.