A Georgia man used thousands and thousands of pandemic-relief funds meant for small companies to purchase luxurious vehicles, actual property and cosmetic surgery, prosecutors say.
Now, he’s dealing with financial institution fraud prices.
Carl Delano Torjagbo, 42, from Marietta, a metropolis about 20 miles northwest of Atlanta, was indicted on May 10 on prices of federal financial institution fraud and cash laundering, in accordance with a information launch from the U.S. Attorney’s Office for the Northern District of Georgia.
Between January and March 2021, Carl Delano Torjagbo, also called Karl Lucius Delano, is accused of collaborating in a scheme to defraud JPMorgan Chase Bank, court docket paperwork obtained by McClatchy News present. Prosecutors say Torjagbo spent thousands and thousands of mortgage funds to “upgrade his personal lifestyle.”
An legal professional for Torjagbo couldn’t be reached by McClatchy News on May 13.
According to the federal government, the scheme started in February 2021, when Torjagbo submitted a Payment Protection Plan mortgage utility to Chase Bank requesting a mortgage of $9,554,425.
Chase Bank was one of many lenders in thePPP, in accordance with court docket paperwork. The program supported small companies all through the COVID-19 pandemic by serving to cowl some payroll prices “including benefits, interest on mortgages, rent and utilities.”
Only companies that had been “in operation” on Feb. 15, 2020 had been eligible for a PPP mortgage, in accordance with the federal government.
Prosecutors say Torjagbo created Kremkov Industries, a faux firm with no enterprise or staff, out of Georgia on Jan. 4, 2021 — nearly a yr after the eligibility date for the PPP had handed.
Torjagbo is accused of mendacity on his utility by stating his firm was working in February 2020 and that it had 493 staff with a median month-to-month payroll of $3,821,770 — all of which the federal government says isn’t true.
Prosecutors say the person submitted fraudulent paperwork to the financial institution as a part of his utility together with false tax returns and bogus payroll data of the 493 “make-believe” staff.
On March 29, 2021, prosecutors say Torjagbo obtained $9,554,425 in PPP mortgage proceeds from Chase Bank.
Despite stating that the mortgage could be used just for “business-related purposes,” prosecutors say Torjagbo transferred $3 million of the PPP mortgage to repay private money owed and bills days after he obtained the cash, court docket paperwork state.
On July 29, 2021, Torjagbo filed a petition to vary his title to Karl Lucius Delano, court docket paperwork present. A month later, the person created a Wyoming firm known as FlyingJack and used among the mortgage cash to fund the enterprise’s startup bills.
Prosecutors say Torjagbo used greater than $837,000 to buy vehicles and trailers within the title of FlyingJack.
Torjagbo used funds from the PPP mortgage to buy a $87,020 Land Rover and a $115,250 BMW, prosecutors say, and spent over $1.5 million for his private residence and $300,000 to buy actual property.
The man can also be accused of spending greater than $15,000 on cosmetic surgery.