A federal jury convicted a man in Augusta, Georgia, of fraud after borrowing nearly $ 3 million to refinance an apartment complex, then filed for bankruptcy after being foreclosed.
Jerome Water Kiggundu has been found guilty in federal district court of bank fraud and bankruptcy, as well as false affidavits, according to a press release issued by the United States Attorney’s Office for the Southern District of Georgia. The borrower could face up to 30 years in federal prison, followed by a period of supervised release and an order for payment of fines and restitution upon conviction.
Defendant “woven a web of financial lies to secure a million dollar loan, then escalated those lies by committing bankruptcy fraud and lying under oath,” said David Estes, US District Attorney for the Southern District from Georgia.
The crime emphasizes the importance of ensuring the integrity of the documentation used by lenders to verify loan information at a time when fraud, critical mortgage defaults and bankruptcy have been on the rise.
FBI investigation found that Kiggundu, as a registered agent of Nakaddu limited liability company (also known as Kiggun Properties), borrowed over $ 2.83 million from a mortgage lender anonymous in March 2019 based on fraudulent bank statements distorting his company’s average monthly operating balance to be around $ 100,000 rather than $ 500, according to court documents. After then filing for foreclosure, Kiggundu submitted another round of fraudulent bank statements and lied under oath about his finances when questioned.
“No matter how elaborate or complicated the fraud scheme is, the FBI will try to find out,” Chris Hacker, special agent in charge of the Atlanta office of the Federal Bureau of Investigation, said in the press release. .