AUGUSTA, Ga. (WJBF) – An Augusta man has been indicted on federal fraud charges after borrowing nearly $3 million to purchase an Augusta apartment complex.

36-year-old Jerome Walter Kiggundu is charged with Bank Fraud, Bankruptcy Fraud and False Statements Under Oath. He faces up to 30 years in prison, if convicted.

Kiggundu is listed as the registered agent and managing member of Nakaddu LLC, aka Kiggun Properties LLC.

According to the indictment, in March 2019, Kiggundu 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 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 of the defendant.” The indictment further alleges that Kiggundu again used falsified bank statements in his filing for bankruptcy protection.

“Financial fraud robs communities of legitimate opportunities for growth and development by siphoning off funds that otherwise could have been used for productive purposes,” said U.S. Attorney Bobby Christine. “Along with our law enforcement partners, we will aggressively pursue those who would illegally enrich themselves at the expense of their communities.”

The case is being investigated by the FBI and prosecuted for the United States by Special Assistant U.S. Attorney Edwin Caban.

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