A federal jury has convicted Carl Delano Torjagbo, also known as Karl Lucius Delano, of Marietta, Georgia, on charges of bank fraud, wire fraud, and money laundering related to fraudulent activities involving the Paycheck Protection Program (PPP) and tax refunds.
According to prosecutors, Torjagbo secured a $9.6 million PPP loan using false information about his business, Kremkov Industries. He claimed the company had 493 employees and an average monthly payroll nearing $4 million. Investigators determined that he submitted fraudulent documents as part of his application, including fake payroll reports listing celebrities and fictional characters as employees.
On February 13, 2021, Torjagbo also filed two separate tax returns using different social security numbers and dates of birth. These returns falsely reported millions in losses from his purported African gold mine business. The filings led to a U.S. Treasury check for over $3.3 million being issued to him.
Authorities say that after receiving both the PPP funds and the tax refund in early 2021, Torjagbo spent large sums on personal expenses such as real estate purchases, luxury vehicles—including a Lamborghini Aventador—and a down payment on a yacht.
“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 of 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.”
The jury found Torjagbo guilty on July 25, 2025; he faces up to 170 years in prison followed by five years of supervised release at sentencing scheduled for November 3 before United States District Judge Michael L. Brown.
This 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 the 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 aimed at coordinating government efforts against pandemic-related fraud schemes through investigations and information sharing among agencies nationwide: https://www.justice.gov/coronavirus.
Members of the public can report suspected COVID-19 related fraud via phone or online form through contacts provided by the Department: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
