Carl Delano Torjagbo, also known as Karl Lucius Delano, has been sentenced to nearly 15 years in federal prison after being convicted of orchestrating a $13 million fraud involving the Paycheck Protection Program (PPP) and fraudulent tax returns. The sentence includes an order to forfeit millions in cash and property obtained through the scheme.
U.S. Attorney Theodore S. Hertzberg stated, “This defendant shamelessly defrauded the government out of $13 million in taxpayer money to fund his lavish lifestyle. Through aggressive prosecution, my office will continue to ensure that anyone who abuses government relief programs and robs government coffers pays dearly for their crimes.”
According to prosecutors, Torjagbo submitted false tax returns using multiple social security numbers and birth dates on February 13, 2021. He claimed over $3 million in tax withholdings and reported fictitious losses from Kremkov Industries, a supposed gold mining business based in Ghana. These filings resulted in a U.S. Treasury check issued for more than $3.3 million.
Three days later, on February 16, 2021, Torjagbo applied for a PPP loan amounting to over $9.5 million by falsely certifying that Kremkov Industries had nearly 500 employees based in the United States with an average monthly payroll close to $4 million. Supporting documents included fake payroll records listing celebrities such as Keanu Reeves and Gene Hackman among company employees.
The funds were used by Torjagbo for personal expenses including buying a Marietta mansion and luxury vehicles.
Peter Ellis, Acting Special Agent in Charge of FBI Atlanta said, “Carl Torjagbo’s fraudulent actions represent one of the largest single instances of PPP loan fraud. By fabricating a sham business and lying to steal millions, he blatantly exploited taxpayer dollars meant to help those in need. The FBI will relentlessly pursue criminals like Torjagbo who think they can profit at the public’s expense.”
Special Agent in Charge Demetrius Hardeman from IRS Criminal Investigation added: “Torjagbo’s sentence sends a clear message to criminals that committing tax fraud and defrauding federal programs for personal gain ends with them being held accountable. IRS Criminal Investigation remains committed to protecting taxpayer dollars and ensuring that fraudsters face the full consequences of their actions.”
Joel Weaver from TIGTA commented: “This sentencing demonstrates the commitment of the Treasury Inspector General for Tax Administration (TIGTA) to investigate and bring to justice those who victimize the American taxpayer… Fraudulently applying for loans through a federal program meant to assist Americans in need will be met with aggressive investigation and prosecution.”
On July 25, 2025, a jury found Torjagbo guilty on counts including bank fraud, wire fraud, and money laundering.
On January 27, 2026, U.S. District Judge Michael L. Brown sentenced him to fourteen years and seven months imprisonment followed by five years supervised release; he must pay at least $3.36 million restitution and forfeit assets such as over $1.75 million seized from accounts; real estate purchased with illegal proceeds; several luxury cars; land holdings; plus a monetary judgment exceeding $4.6 million.
The case was investigated by multiple 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 Office of Inspector General.
Assistant U.S. Attorneys Kelly K. Connors and Nicholas L. Evert prosecuted this case.
The Department of Justice established its COVID-19 Fraud Enforcement Task Force on May 17, 2021—aimed at coordinating resources across agencies nationwide against pandemic-related fraud schemes—and continues efforts against such criminal activity (source).
The U.S Attorney’s Office for the Northern District of Georgia, led by Theodore S. Hertzberg (source), operates as principal federal law enforcement agency serving about 7.5 million residents across north Georgia—including Atlanta—and manages cases nationally (source). Its responsibilities include prosecuting criminal offenses like financial crimes while collaborating closely with other law enforcement partners (source).
Anyone aware of attempted COVID-19 related fraud is encouraged to report it via DOJ National Center for Disaster Fraud Hotline or web form.
