A federal jury has convicted Carl Delano Torjagbo, also known as Karl Lucius Delano, of bank fraud, wire fraud, and money laundering in connection with a $9.6 million Paycheck Protection Program (PPP) loan scheme and a $3.4 million tax fraud.
According to prosecutors, Torjagbo submitted two fraudulent individual tax returns to the IRS on February 13, 2021. Each return used different social security numbers and dates of birth and claimed millions in losses tied to his purported African gold mine business, Kremkov Industries. These filings resulted in the issuance of a U.S. Treasury check for more than $3.3 million.
Just days later, Torjagbo applied for a PPP loan for Kremkov Industries, falsely certifying that the company was operational as required by program rules and claiming it had 493 employees with an average monthly payroll nearing $4 million. He also provided fake documents listing celebrities and fictional characters as employees.
On March 29, 2021, he received approximately $9.6 million in PPP funds but did not use them for business purposes as mandated by the program. Instead, authorities say he combined these funds with his fraudulent tax refund to pay personal debts and expenses including over $1.6 million toward his residence; luxury vehicles such as a Lamborghini Aventador ($332,999), BMW M850xi ($120,799), Land Rover Range Rover Velar ($90,520); a yacht down payment; real estate; trucks; trailers; and plastic surgery.
Torjagbo was found guilty on July 25, 2025. He faces up to 170 years in prison followed by five years of supervised release when sentenced on November 3 before United States District Judge Michael L. Brown.
U.S. Attorney Theodore S. Hertzberg commented: “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.”
FBI Atlanta Special Agent in Charge Paul Brown stated: “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.”
IRS Criminal Investigation Special Agent in Charge Demetrius Hardeman added: “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, IRS Criminal Investigation, 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.”
TIGTA Special Agent-in-Charge Joel Weaver said: “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 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 Social Security Administration's Office of Inspector General.
Assistant United States Attorneys Kelly K. Connors and Nicholas L. Evert prosecuted the case.
The Department of Justice created the COVID-19 Fraud Enforcement Task Force on May 17, 2021 https://www.justice.gov/coronavirus/overview-covid-19-fraud-enforcement-task-force , which brings together resources from multiple agencies to investigate pandemic-related fraud schemes.
Reports about attempted COVID-19 related fraud can be made through the National Center for Disaster Fraud Hotline or online at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form .
For further information about this case or others handled by this office visit http://www.justice.gov/usao-ndga .
