AUGUSTA, Ga. (CW69 News at 10) – An Augusta man who allegedly borrowed nearly $3 million to purchase an apartment complex, and then filed for bankruptcy protection when facing foreclosure, has been indicted on federal fraud charges according to a statement from the U.S. Attorney’s Office in Savannah.
Jerome Walter Kiggundu, 36, the registered agent and managing member of Nakaddu LLC, a/k/a Kiggun Properties LLC, is charged with Bank Fraud, Bankruptcy Fraud, and False Statements Under Oath, said Bobby L. Christine, U.S. Attorney for the Southern District of Georgia.READ MORE: Stimulus Check Update: Is A Fourth Relief Payment Coming?
If convicted, Kiggundu faces a sentence of up to 30 years in prison and substantial fines and restitution, followed by a period of supervised release.
There is no parole in the federal system.READ MORE: Wild Ride: Suspects Identified In Carroll County Police Chase
According to the indictment, in March 2019, Kiggundu allegedly borrowed $2,831,250 from Red Oak Capital Fund II LLC “by means of materially false and fraudulent pretenses” and submitted, as part of a loan application, “altered Wells Fargo bank statements for the months of October 2018 to December 2018 … which falsely reflected an average monthly operating balance for Nakaddu LLC of approximately $100,000, when in fact the monthly average was $500 or less during this time.”
As collateral to secure the loan, Kiggundu allegedly pledged an 80-unit apartment complex located at 405 Hale Street in Augusta, and “falsely listed an ownership interest in 1726 Leona Mitchell Blvd., Enid, Oklahoma, and reported $2,150,000 in equity.”
Kiggundu then, according to the indictment, allegedly filed for bankruptcy protection under Chapter 11 “with the intention of avoiding foreclosure by Red Oak on 405 Hale Street and to conceal the fraudulent actions of the defendant.” The indictment further alleges that Kiggundu again used falsified bank statements in his filing for bankruptcy protection.MORE NEWS: Deal Between Battery Firms A Big Lift For Georgia
Criminal indictments contain only charges; defendants are presumed innocent unless and until proven guilty.