Marietta man convicted for multi-million dollar PPP loan and tax fraud schemes

A Marietta man, Carl Delano Torjagbo, also known as Karl Lucius Delano, was found guilty by a federal jury of bank fraud, wire fraud, and money laundering. The conviction follows allegations that Torjagbo secured a fraudulent $9.6 million Paycheck Protection Program (PPP) loan and filed false tax returns to obtain a $3.4 million refund from the IRS.

U.S. Attorney Theodore S. Hertzberg commented on the case: “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 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,” he said. “Torjagbo chose greed over compassion. He will now be held accountable for his actions.”

Demetrius Hardeman, Special Agent in Charge of IRS Criminal Investigation in Atlanta, 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,” Hardeman said. “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.”

Joel Weaver from the Treasury Inspector General for Tax Administration (TIGTA) also addressed the verdict: “The Treasury Inspector General for Tax Administration (TIGTA) aggressively pursues those who abuse the tax administration process for unlawful purposes,” Weaver said. “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."

Evidence presented at trial showed that on February 13, 2021, Torjagbo submitted two individual tax returns using different social security numbers and dates of birth. These filings claimed millions in losses linked to his purported African gold mine business Kremkov Industries—claims that led to issuance of an IRS check for more than $3.36 million.

Three days later, on February 16, 2021, Torjagbo signed an application requesting nearly $9.6 million through the PPP for Kremkov Industries. Authorities say he falsely stated that Kremkov Industries was operating as required under program rules; claimed 493 employees whose primary residence was in the United States; reported an average monthly payroll near $4 million; certified all funds would be used solely for business purposes; and provided fake supporting documents including false tax returns and payroll records listing celebrities and fictional characters as employees.

On March 29, 2021 Torjagbo received about $9.6 million from the PPP loan proceeds but instead mixed these funds with his fraudulent IRS refund for personal expenditures such as buying luxury vehicles—including a Lamborghini Aventador—and making large payments toward real estate purchases as well as paying off personal debts.

In total:

- Over $1.67 million was spent on his residence,

- Nearly $333,000 on a Lamborghini,

- More than $120,000 on a BMW,

- More than $90,000 on a Range Rover,

- A down payment exceeding $51,000 went toward purchasing a yacht,

- Over $1 million funded real estate acquisitions for another business venture,

- And more than $15,000 paid for plastic surgery.

On July 25, 2025 Torjagbo was convicted of all charges by jury verdict at age 49 in Marietta Georgia; he now faces up to 170 years imprisonment plus five years supervised release pending sentencing guidelines consideration by United States District Judge Michael L. Brown at sentencing set for November 3rd.

The investigation involved several agencies including the FBI Atlanta Field Office https://www.fbi.gov/contact-us/field-offices/atlanta , Internal Revenue Service Criminal Investigation https://www.treasury.gov/tigta , U.S Treasury Inspector General for Tax Administration https://www.treasury.gov/tigta , with additional assistance from Social Security Administration Office of Inspector General https://oig.ssa.gov .

Prosecution is being handled by Assistant United States Attorneys Kelly K Connors and Nicholas L Evert.

To address pandemic-related fraud nationwide—including cases like this—the Department of Justice established the COVID-19 Fraud Enforcement Task Force in May 2021 aimed at enhancing coordination among federal agencies tasked with preventing misuse of relief programs https://www.justice.gov/coronavirus .

Reports about suspected COVID-19 related fraud can be made via phone or online through official Department resources https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form .

For further information contact U.S Attorney's Public Affairs Office at USAGAN.PressEmails@usdoj.gov or visit http://www.justice.gov/usao-ndga .