ATLANTA — Karl Lucius Delano, also known as Carl Delano Torjagbo, has been convicted by a federal jury of bank fraud, wire fraud, and money laundering for his role in a $9.6 million Paycheck Protection Program (PPP) loan scheme and a separate $3.4 million tax refund fraud.
‘This defendant’s massive PPP fraud not only exploited a program meant to aid struggling Americans but also added insult to injury by claiming a fraudulent tax refund,’ said U.S. Attorney Theodore S. Hertzberg. ‘Torjagbo’s conviction underscores our commitment to pursuing and prosecuting those who defraud honest taxpayers.’
According to authorities, Delano submitted fraudulent PPP loan applications for his company, Kremkov Industries, falsely claiming the business was operational and had a payroll exceeding $4 million. He used the proceeds to fund personal expenses, including luxury vehicles and real estate.
‘Torjagbo’s actions were greedy and cruel,’ said FBI Atlanta Special Agent in Charge Paul Brown. ‘Instead of helping businesses during the pandemic, he chose to enrich himself at the expense of hardworking Americans.’
The IRS Criminal Investigation confirmed that Delano used the tax refund fraudulently obtained to further fund his lavish lifestyle, disregarding the intended purpose of the program. Special Agent in Charge Demetrius Hardeman emphasized the agency’s dedication to identifying and prosecuting those who abuse federal programs.
Delano’s conviction comes after a weeklong trial, where evidence was presented detailing his fraudulent activities and the impact on legitimate PPP borrowers and taxpayers. The case highlights the U.S. Attorney’s Office and its law enforcement partners’ relentless pursuit of financial fraudsters.
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Key Facts
- State: Georgia
- Agency: DOJ USAO
- Category: Fraud & Financial Crimes|Public Corruption
- Source: Official Source ↗
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