ATLANTA – A Marietta man has been charged in a massive PPP loan fraud scheme, allegedly obtaining $9.5 million in taxpayer money intended to help small businesses survive the COVID-19 pandemic.
Carl Delano Torjagbo, a/k/a Karl Lucius Delano, 32, was arrested on federal bank fraud and money laundering charges, accused of using the loan proceeds to upgrade his personal lifestyle.
According to the U.S. Attorney’s Office, Torjagbo submitted a PPP loan application on behalf of Kremkov Industries LLC on February 16, 2021, requesting a loan in the amount of $9,554,425.00. However, Kremkov Industries was not eligible for the loan because it was not in operation on February 15, 2020, as required by law.
Torjagbo allegedly submitted fraudulent documents to the bank, including false tax returns and fake reports listing the names and make-believe payroll information of the 493 people who purportedly worked for Kremkov Industries.
On March 29, 2021, the bank transferred $9,554,425.00 in PPP loan proceeds to Torjagbo’s custody and control. The loan proceeds were initially deposited into a bank account titled in the name of Kremkov Industries. Immediately before that deposit, the balance in that account was only $105.
Torjagbo caused $3 million of the PPP loan proceeds to be transferred by check from the bank to a different bank on April 8, 2021. However, those funds were allegedly used to pay Torjagbo’s personal debts and expenses, including paying off $1,677,800 in personal debts and using $1,200,000 to purchase a 2021 Mercedes-Benz G63.
Torjagbo faces federal bank fraud and money laundering charges. If convicted, he could face up to 30 years in prison and a $1 million fine.
The case is being investigated by the FBI’s Atlanta Field Office and the Treasury Inspector General for Tax Administration.
Torjagbo has been released on bond pending a court appearance.
Related Federal Cases
- Daniqua Clark, Mail Stream Theft and COVID-19 Relief Fraud, Georgia 2023 · Georgia
- Sark Wire Corporation, PPP Fraud, Albany NY, 2023 · New York
- Angela Miller and Lee Lynwood, Tax Return Fraud, Georgia, 2008 · Georgia
- Princess L. Eatmon, Student Loan Wire Fraud, Albany GA, 2023 · Puerto Rico
- Four Individuals Face Federal Oxycodone Fraud Charges, Georgia, 2023 · Georgia
Key Facts
- State: Georgia
- Category: Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
ðŸâ€Â’ Get the grimiest stories delivered weekly. Subscribe free →
MORE FEDERAL CRIME NEWS
US NewsUS NewsUS NewsUS News