MARIETTA, Ga. – A federal grand jury has indicted a Marietta man on charges that he fraudulently obtained millions of dollars through a COVID-19 relief program for his own personal gain.
Carl Delano Torjagbo, also known as Karl Lucius Delano, was arrested on federal bank fraud and money laundering charges, U.S. Attorney of Georgia’s Northern District says.
Torjagbo is accused by authorities of creating a fictitious company to defraud a bank out of a $9.5 million Paycheck Protection Program, or PPP, loan.
Authorities say Torjagbo requested a loan on Feb. 16, 2021 of more than $9.5 million on behalf of Kremkov Industries LLC.
Business owners are eligible for PPP loans if a business is in operation on Feb. 15, 2020. According to officials, the company he used was created around 10 months after the deadline; therefore, not eligible for the loan.
Investigators allege Torjagbo provided the bank with false documents and reports including tax returns and payroll listings. Official claim he went as far as creating a fake number of 493 employees at the company and submitted an average monthly payroll of $3,821,770.
On March 29, 2021, the bank transferred the requested funds into Torjagbo’s account as a result of the allegedly fake and fraudulent reports.
After getting the money, authorities say Torjagbo took $3 million of the loan and transferring it by check from one bank to another.
While Torjagbo stated that the funds were to be used for payroll, officials reported that instead Torjagbo used the funds for personal use including:
- $1,677,861.01 for his personal residence;
- More than $837,000 for tractor-trailers to start a new trucking business;
- Approximately $300,000 to purchase other real estate;
- $118,299.79 for a 2022 BMW M850XL
- $87,020 for a 2021 Land Rover Velar; and
- More than $15,000 for plastic surgery.
“This defendant allegedly stole millions of dollars in taxpayer money intended to help small businesses stay afloat during the pandemic,” said U.S. Attorney Ryan K. Buchanan. “We will continue to investigate and charge anyone who fraudulently obtains these critical funds and uses them for their own personal gain.”
On May 10, Torjagbo was indicted by a federal grand jury on charges of bank fraud and money laundering. He will face the charges in court at a later date.