A Canadian national has been remanded to Luzira Prison after appearing before the Buganda Road Chief Magistrate’s Court on charges of obtaining money by false pretences and dealing in minerals without the required licence.
The accused, 64-year-old Michel Faille, a consultant residing at Mestil Hotel in Nsambya, Kampala, appeared before Chief Magistrate Ritah Neumbe Kidasa on Friday and denied both charges.
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According to the prosecution, Faille and other individuals who are still on the run allegedly defrauded Abdulkadir Mohamed Nur of USD 1.5 million, equivalent to about UGX 5.6 billion, between July and October 2025.
Prosecutors allege that the suspects convinced the complainant they would facilitate the export of 16 tonnes of gold from Uganda to Dubai, but the promised shipment never materialised.
Court documents indicate that the alleged fraudulent transactions took place at Acacia Mall in Kamwokya, Kampala.
In a separate charge, prosecutors accuse Faille of unlawfully possessing 740 kilograms of nuggets suspected to be gold at premises in Kololo without holding a valid mineral dealer’s licence as required under Uganda’s mining laws.
State Attorney Grace Amy told the court that investigations into the matter are still ongoing and requested more time for police to complete their inquiries.
Chief Magistrate Kidasa granted the request and remanded Faille to Luzira Prison until August 12, 2026, when the case will return to court for mention and an update on the status of investigations.
The case adds to a growing number of high-profile gold fraud cases involving foreign investors in Uganda.
In previous investigations, several foreign nationals have reported losing large sums of money after entering into fraudulent gold transactions with individuals posing as legitimate mineral dealers.
Some cases have resulted in criminal prosecutions for offences including obtaining money by false pretences, conspiracy to defraud, forgery and impersonation.
Security agencies have consistently urged both local and international investors to verify the authenticity and licensing status of mineral dealers before entering into gold transactions.
Authorities say criminal networks continue to exploit the lucrative gold trade by targeting unsuspecting foreign buyers with fake export deals, causing substantial financial losses.
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