Funding a New Business…and Plastic Surgery

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Sometimes it’s hard to get funding for new businesses. Sometimes it’s hard to save up for plastic surgery. Carl Delano Torjago saw an opportunity to do both when the federal government rolled out the Paycheck Protection Program for existing companies. But the federal government views it differently and Toriago was arrested and charged with obtaining a fraudulent $9.5 million PPP loan.

Authorities allege that on Feb. 15, 2021, Torjagbo filed for a PPP loan for Kremkov Industries, a company of 493 employees with an average monthly payroll of more than $3.8 million. Torjagbo swore that the information he provided was “true and accurate in all material respects.” In fact, most of this information was allegedly not “true and accurate” including the fact that Kremkov Industries was not even a real company at all. But Torjago had plans apparently.

According to the feds, the bank processing the PPP loan transferred more than $9.5 million into a bank account in the name of Kremkov Industries. Shortly after receipt of the PPP loan funds, Torjago wrote a “payroll” check to himself in the amount of $3million.  Payday!

At some point, Torjago finally began to start up Kremkov Industries by buying more than $837,000 for tractor trailers. But not until after he spent $15,000 for plastic surgery, over $1.9million in real estate and almost $200K on a BMW and Land Rover for his own personal use.  Too bad for him, the justice department is going to close Kremkov Industries before it really gets going.

Congratulations to The Treasury Inspector General for Tax Administration and the COVID-19 Fraud Enforcement Task Force for discovering this fraud done by Toriago.

Today’s “Fraud of the Day” is based on an article in the Fort Worth Star Telegram on May 13, 2022

Man used millions in COVID-relief funds to buy luxury cars, plastic surgery, feds say

BY CASSANDRE COYER -A Georgia man used millions of pandemic-relief funds meant for small businesses to buy luxury cars, real estate and plastic surgery, prosecutors say. Now, he is facing bank fraud charges.

Carl Delano Torjagbo, 42, from Marietta, a city about 20 miles northwest of Atlanta, was indicted on May 10 on charges of federal bank fraud and money laundering, according to a news release from the U.S. Attorney’s Office for the Northern District of Georgia.

 

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Larry Benson, Senior Director of Strategic Alliances, LexisNexis Risk Solutions - Government

Larry Benson is responsible for developing strategic partnerships and solutions for the government vertical. His expertise focuses on how government programs are defrauded by criminal groups, and the approaches necessary to prevent them from succeeding.

Mr. Benson has 30 years of experience in sales and business development. Before joining LexisNexis® Risk Solutions, he spent 12 years founding and managing two software technology startups. During the 1990s he spent 10 years as a Regional Director helping to grow a New England-based technology company from 300 employees to 7,000. He started his career with Martin Marietta Aerospace working on laser guided weapons and day/night vision systems.

A sought-after speaker and accomplished writer, Mr. Benson is the principal author of “Fraud of the Day,” a website dedicated to educating government officials about how criminals are defrauding government programs. He has co-authored WTF? Where’s the Fraud? How to Unmask and Stop Identity Fraud’s Drain on Our Government, and Data Personified, How Fraud is Changing the Meaning of Identity.

Benson holds a Bachelor of Science in Physics from Albright College, and earned two graduate degrees – a Master of Business Administration from Florida Institute of Technology, and a Master of Science in Engineering from Lehigh University.