Carl Delano Torjagbo, also known as Karl Lucius Delano, was convicted for orchestrating a $13 million fraud scheme targeting U.S. government programs.
Charges and Fraud Scheme
Carl Delano Torjagbo was convicted for orchestrating a $13 million fraud scheme targeting U.S. government programs, particularly abusing PPP loans and tax refunds.
He fraudulently obtained $9.6 million through fake loan applications and $3.4 million in tax refunds. This scheme resulted in significant losses to taxpayer funds meant to support struggling businesses during the pandemic.
Authorities' Reaction and Consequences
U.S. Attorney Theodore S. Hertzberg stated: "This defendant’s massive PPP fraud abused a valuable program intended to assist struggling Americans during a global pandemic." Over $1.97 million was recovered, while the remaining amount remained untraceable, highlighting the need for increased oversight and enforcement against fraud in government programs.
Absence of Impact on Cryptocurrency Market
Despite the scale of the fraud, no cryptocurrency assets were involved in this crime. All operations were conducted through traditional banking channels, demonstrating a clear absence of connection between this case and the digital asset sector.
The case of Carl Torjagbo highlights serious risks associated with fraud in government assistance programs and the need for improved measures to combat such actions.
