After being convicted of fraudulently borrowing nearly $3 million to refinance a downtown Augusta apartment complex before seeking bankruptcy protection when facing foreclosure, an Augusta man faces up to three decades in jail.
After a two-day trial in U.S. District Court, Jerome Walter Kiggundu, 37, the registered agent and controlling member of Nakaddu LLC, a/k/a Kiggun Properties LLC, was found guilty of bank fraud, bankruptcy fraud, and false statements under oath.
Kiggundu faces a maximum term of 30 years in jail, as well as significant penalties and reparations, as well as a period of supervised release.
“Jerome Kiggundu concocted a web of financial lies to acquire a multimillion-dollar loan, then compounded those lies by committing bankruptcy fraud and lying under oath when challenged about it,” said US Attorney David H. Estes.
Kiggundu borrowed $2.83 million in March 2019 by falsifying bank statements to fraudulently represent his company had an average monthly operating balance of about $100,000, according to testimony given before U.S. District Court Chief Judge J. Randal Hall.
In reality, his account was worth around $500 on average.
Kiggundu pledged an 80-unit apartment complex at 405 Hale St. in Augusta as collateral for the loan, as well as “falsely listing an ownership interest in 1726 Leona Mitchell Blvd., Enid, Oklahoma and reporting $2,150,000 in equity,” according to the US Attorney’s Office.
According to authorities, Kiggundu allegedly submitted a fraudulent personal financial statement that exaggerated his net worth and assets.
According to prosecutors, when the scheme began to unravel, Kiggundu filed for Chapter 11 bankruptcy protection and then submitted forged bank statements in his bankruptcy.
The FBI investigated the case, and Assistant US Attorneys Patrick J. Schwedler and Jennifer A. Stanley prosecuted it.
