Carl Delano Torjagbo Convicted in $13 Million Fraud Scheme

TLDR

• Torjagbo exploited $13 million in pandemic relief funds.
• Fraud involved fake businesses and falsified identities.
• No connection to cryptocurrencies or crypto-related assets.

The United States government has uncovered a fraudulent scheme led by Carl Delano Torjagbo, also known as Karl Lucius Delano. He was convicted in July 2025 for his involvement in a $13 million fraud. This scheme involved the submission of false applications for Paycheck Protection Program (PPP) loans and IRS refunds. These applications were made on behalf of non-existent businesses, aiming to exploit government relief programs.

The fraudulent activities primarily targeted federal pandemic relief assistance and did not involve cryptocurrency-related grants or digital assets. Consequently, the incident stands apart from the crypto sector, with no evidence suggesting the involvement of cryptocurrencies or blockchain technology.

U.S. Government’s Response to Pandemic Relief Fraud

U.S. Attorney Theodore S. Hertzberg commented on the conviction, emphasizing the dedication of his office to pursue and prosecute those engaged in fraud. “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,” he stated, highlighting the negative impact on taxpayers.

The fraud primarily involved U.S. taxpayer dollars allocated for pandemic relief. Special Agent in Charge Demetrius Hardeman from the IRS Criminal Investigation echoed this sentiment, noting, “Taxpayers’ money that should have gone to these businesses instead went to Torjagbo, who then used it to fund his lavish lifestyle.” This statement reiterates the financial damage caused by the fraudulent activities.

Details of the Fraudulent Scheme

The official government documents reveal that Carl Delano Torjagbo used fake small businesses and falsified investor identities to bypass loan verification standards. The fraudulent scheme involved multiple shell companies, making a substantial amount of funds unrecoverable. The misuse of pandemic relief programs by Torjagbo led to his lavish expenditures, which were not related to any crypto investments.

The scheme’s focus on exploiting PPP and IRS refunds without the use of crypto assets sets it apart from other fraud cases involving cryptocurrencies. According to IRS statements and court documents, there was no connection to cryptocurrencies or influence on the crypto market, such as changes to Total Value Locked or liquidity shifts.

Absence of Crypto Industry Involvement

No cryptocurrency exchanges or figures from the crypto sector have been associated with this event. Prominent industry leaders like Arthur Hayes, CZ, or Vitalik Buterin have not made any public statements on this case, further confirming it is not connected to the crypto world. There are no indications of any influence on governance tokens, DeFi protocols, or related network assets.

Official sources, including the IRS Criminal Investigation newsroom and the Department of Justice press releases, remain the primary references for updates on this case. For more details about other fraud cases like this, please refer to information about the Marietta man’s conviction or the New Jersey businessman’s scheme.