Web store

Augusta man convicted of multi-million dollar scheme to defraud mortgage lender | USAO-SDGA

AUGUSTA, Georgia: An Augusta man was convicted of fraud by a federal jury that found he had committed fraud by borrowing nearly $ 3 million to refinance an apartment complex in Augusta, then filed for a down payment. bankrupt in the face of foreclosure.

Jérôme Walter Kiggundu, 37, the registered agent and managing member of Nakaddu LLC, a / k / a Kiggun Properties LLC, was convicted after a two-day trial in United States district court on charges of bank fraud, credit fraud bankruptcy and false affidavits, said David H. Estes, US attorney for the Southern District of Georgia. Kiggundu faces a sentence of up to 30 years in prison with substantial fines and restitution, followed by a period of supervised release.

There is no parole in the federal system.

“Jerome Kiggundu wove a web of financial lies to get a million dollar loan, then compounded those lies by committing bankruptcy fraud and lying under oath when confronted about it,” said US Attorney Estes. “Thanks to the exceptional investigative work of the FBI and the vigilance of the employees of the United States Trustees Program, the jury discovered his fraud and hold him accountable.”

As reported in the trial before U.S. District Court Chief Justice J. Randal Hall, Kiggundu borrowed $ 2,831,250 from a mortgage lender in March 2019 by submitting fraudulent bank statements to falsely claim his business had a balance. average monthly operating costs of about $ 100,000. In truth, his account averaged around $ 500 during that time. Kiggundu also submitted a fake personal financial statement that overstated his net worth and assets in order to qualify for the loan.

When the scheme began to crumble, Kiggundu filed for Chapter 11 bankruptcy in an attempt to avoid foreclosure by the lender. Kiggundu then doubled down on his scheme and submitted another round of fake bank statementsupon choosing the right bankruptcy attorney to cover up his bank fraud and cover his tracks. He also lied under oath about his finances when questioned by employees of the United States Trustee Program who suspected the fraud.

“No matter how elaborate or complicated the fraud scheme is, the FBI will try to find out,” said Chris Hacker, special agent in charge of FBI Atlanta. “Kiggundu will now be held responsible for the damage he caused, sending a strong message to anyone who considers such fraud to be a serious crime with serious consequences.”

The case was investigated by the FBI and prosecuted for the United States by US Assistant Prosecutors Patrick J. Schwedler and Jennifer A. Stanley.