Fraudulent PPP Loan Scheme Costs US Government $13 Million

• Lyla Velez
• August 4, 2025
• News
• 0 Comments

This high-profile conviction highlights weaknesses in federal pandemic relief and continued government enforcement efforts.

Details of the Fraud

Carl Delano Torjagbo was found guilty of orchestrating a complex fraud that involved $9.6 million in
PPP loans
and a $3.4 million
IRS tax refund.
The U.S. Attorney’s Office sentenced him as part of heightened efforts against 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 — Theodore S. Hertzberg, U.S. Attorney, Northern District of Georgia.

In Georgia, actions were undertaken by Torjagbo, involving wire fraud and
money laundering
leading to his conviction. Attempts were made to disguise the origins of the funds obtained through deceptive loan applications submitted under false pretenses.

Impact and Broader Implications

This fraudulent activity has impacted taxpayer funds, as monies intended for
small business relief were misused. The
IRS Criminal Investigation
and FBI Atlanta
strongly criticized the scheme, stressing an ongoing commitment to
combating financial crimes.

There are broader social and political implications. Heightened
government scrutiny
of relief dispersals could affect future loan distributions. Enhanced
monitoring systems
may be implemented in response, addressing existing
regulatory gaps.

Future financial and regulatory
implications
include stricter vetting processes and increased penalties for fraud. These aims include reducing risk and protecting against future
financial misconduct
within public assistance programs.