A Marietta man has been convicted by a federal jury for defrauding the Paycheck Protection Program (PPP) and filing fraudulent tax returns, resulting in millions of dollars in losses to government programs. Carl Delano Torjagbo, also known as Karl Lucius Delano, was found guilty of bank fraud, wire fraud, and money laundering after obtaining a $9.6 million PPP loan through false information and securing a $3.4 million IRS refund using fraudulent tax filings.
“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 from IRS Criminal Investigation's 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 court documents presented at trial, on February 13, 2021, Torjagbo submitted two individual tax returns using different social security numbers and dates of birth that falsely claimed large business losses from an alleged African gold mine business called Kremkov Industries. These claims led to him receiving more than $3.3 million from the U.S. Treasury.
On February 16, 2021—just days after submitting these returns—Torjagbo applied for nearly $9.6 million under the PPP for Kremkov Industries by falsely certifying eligibility requirements including having hundreds of employees based in the United States and significant payroll expenses. He also provided fake supporting documents listing celebrities and fictional characters as employees.
After receiving both sets of funds by March 29, 2021, authorities say Torjagbo spent them on personal expenses such as real estate purchases—including nearly $1.7 million for his residence—and luxury vehicles like a Lamborghini Aventador ($332,999), BMW M850xi ($120,799), Range Rover Velar ($90,520), as well as putting down $51,000 on a yacht purchase; over $1 million went toward starting another business involving trucks and trailers; more than $15,000 was spent on plastic surgery.
The jury convicted Torjagbo on July 25th; he faces up to 170 years imprisonment plus five years supervised release when sentenced November 3rd before United States District Judge Michael L. Brown.
The investigation involved multiple agencies: 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 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 its COVID-19 Fraud Enforcement Task Force which coordinates resources across government agencies to investigate pandemic-related fraud schemes [https://www.justice.gov/coronavirus]. The public can report suspected COVID-19 relief fraud via phone or online [https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form].
For additional information about this case or related matters contact the U.S Attorney’s Public Affairs Office or visit http://www.justice.gov/usao-ndga.