A federal jury has convicted Carl Delano Torjagbo, also known as Karl Lucius Delano, of bank fraud, wire fraud, and money laundering after he obtained a fraudulent $9.6 million Paycheck Protection Program (PPP) loan and filed false tax returns that resulted in a $3.4 million IRS refund.
“This defendant’s massive PPP fraud abused a valuable program intended to assist struggling Americans during a global pandemic. The defendant then compounded his harm by claiming a fraudulent $3.4 million tax refund,” said U.S. Attorney Theodore S. Hertzberg. “Torjagbo’s conviction signals my office’s relentless pursuit and prosecution of those engaged in fraud, waste, and abuse at the expense of honest taxpayers.”
“Legitimate PPP loans saved small businesses across our country,” said FBI Atlanta Special Agent in Charge Paul Brown. “Torjagbo chose greed over compassion. He will now be held accountable for his actions.”
“Torjagbo defrauded a federal loan program of which its intended use was to assist businesses in covering rent, utility payments, and other job saving needs during the COVID-19 pandemic,” said Special Agent in Charge Demetrius Hardeman, IRS Criminal Investigation, Atlanta Field Office. “Taxpayers’ money that should have gone to these businesses instead went to Torjagbo, who then used it to fund his lavish lifestyle. IRS Criminal Investigation special agents, along with our federal and state law enforcement partners, will continue identifying, investigating, and bringing to prosecution individuals and companies who took advantage of a program Americans desperately needed during a period of economic hardship.”
“The Treasury Inspector General for Tax Administration (TIGTA) aggressively pursues those who abuse the tax administration process for unlawful purposes,” said TIGTA Special Agent-in-Charge Joel Weaver. “We appreciate the efforts of our law enforcement partners and the U.S. Attorney’s Office to ensure individuals engaged in such criminal activity are held accountable to the American people.”
According to information presented at trial, on February 13, 2021, Torjagbo submitted two individual tax returns using different social security numbers and dates of birth. These filings falsely claimed millions in losses tied to an alleged African gold mine business called Kremkov Industries. As a result of these misrepresentations, Torjagbo received a U.S. Treasury check for more than $3.3 million.
Shortly after this tax refund was issued, Torjagbo applied for nearly $9.6 million through the PPP loan program by submitting an application for Kremkov Industries on February 16, 2021. He certified that the company had been operating since February 15, 2020—a requirement for eligibility—and claimed it employed 493 people with an average monthly payroll close to $4 million. The application included false documents such as fabricated tax returns and payroll reports listing celebrities and fictional characters as employees.
On March 29, 2021, Torjagbo received approximately $9.6 million from the PPP loan proceeds but did not use them for their intended purpose under program guidelines; instead he combined these funds with his fraudulent tax refund to pay personal debts and expenses including luxury vehicles like a Lamborghini Aventador ($332,999), BMW M850xi ($120,799), Land Rover Range Rover Velar ($90,520), down payment on a yacht ($51,000), real estate purchases exceeding $1 million for new business ventures involving trucks and trailers; he also spent more than $15,000 on plastic surgery.
The jury found Torjagbo guilty on July 25; he faces up to 170 years in prison followed by five years supervised release when sentenced before United States District Judge Michael L. Brown on November 3.
The case was investigated by several agencies including the Federal Bureau of Investigation (FBI), Internal Revenue Service Criminal Investigation (IRS-CI), U.S. Treasury Inspector General for Tax Administration (TIGTA), with assistance from Social Security Administration’s Office of Inspector General.
Assistant United States Attorneys Kelly K. Connors and Nicholas L. Evert prosecuted the case.
In May 2021 the Department of Justice established the COVID-19 Fraud Enforcement Task Force to coordinate government efforts against pandemic-related fraudsters [https://www.justice.gov/coronavirus]. The task force works across agencies both domestically and internationally to identify fraudulent actors involved in relief programs.
Reports about suspected COVID-19 related fraud can be made via phone or online through the National Center for Disaster Fraud [https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form].
For further information contact U.S Attorney’s Public Affairs Office at USAGAN.PressEmails@usdoj.gov or (404) 581-6185; additional details are available at http://www.justice.gov/usao-ndga.
