Advertisement

Augusta man charged with fraud in purchase of downtown apartment complex

(WEAU)
Published: Oct. 13, 2020 at 4:13 PM EDT
Email This Link
Share on Pinterest
Share on LinkedIn

AUGUSTA, Ga. (WRDW/WAGT) - An Augusta man who borrowed nearly $3 million to purchase an Augusta apartment complex, and then filed for bankruptcy protection when facing foreclosure, has been indicted on federal fraud charges.

Jerome Walter Kiggundu, 36, the registered agent and managing member of Nakaddu LLC, a/k/a Kiggun Properties LLC, is charged withbank fraud, bankruptcy fraud, and false statements under oath, according to Bobby L. Christine, U.S. attorney for the Southern District of Georgia.

According to the indictment, in March 2019, Kiggundu borrowed $2,831,250 from Red Oak Capital Fund II LLC under false pretenses and then submitted, as part of a loan application, “altered Wells Fargo bank statements for the months of October 2018 to December 2018.”

As collateral to secure the loan, Kiggundu 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, 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.”

The indictment further alleges that Kiggundu again used falsified bank statements in his filing for bankruptcy protection.

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.

This case is still being investigated by the FBI and prosecuted for the United States by Special Assistant U.S. Attorney Edwin Caban. Criminal indictments contain only charges; defendants are presumed innocent unless and until proven guilty.

Copyright 2020 WRDW/WAGT. All rights reserved.