The Buganda Road Chief Magistrate’s Court has remanded a 64-year-old Canadian national to Luzira Prison on charges of obtaining money by false pretences and dealing in minerals without a mineral dealer’s licence. Michel Faille, a consultant and resident of Mestil Hotel in Nsambya, Makindye Division, Kampala, appeared before Chief Magistrate Ritah Neumbe Kidasa on Friday evening and denied both charges.
Prosecution alleges that Faille and others still at large, between July and October 2025 at Acacia Mall in Kamwokya, Kampala, fraudulently obtained 1.5 million US dollars (approximately 5.6 billion shillings) from Abdulkadir Mohamed Nur by falsely claiming they would facilitate the shipment of 16 tonnes of gold to Dubai.
The Court also heard that during the same period, Faille was allegedly found in possession of 740 kilograms of nuggets suspected to be gold in Kololo, Kampala, without a valid mineral dealer’s licence. State Attorney Grace Amy informed the court that investigations are still ongoing and asked for an adjournment to allow police to complete inquiries.
Chief Magistrate Kidasa remanded Faille to Luzira Prison until 12 August 2026, when the case will return to court for a mention and an update on the progress of investigations. The case is the latest in a series of gold fraud prosecutions involving foreign investors in Uganda.
In one of the most prominent cases, Canadian national Clifford Max Potter reportedly lost about one million US dollars between 2016 and 2019 after entering into a gold purchase agreement with Ugandan businessman Stephen Bairukanga.
According to investigations by the Criminal Investigations Directorate (CID), the money was deposited into accounts controlled by Bairukanga, but the promised gold was never delivered.
The case also prompted investigations into whether the financial institutions involved complied with Uganda’s anti-money laundering regulations.Another Canadian investor, Assi Soubhi, a dealer in rare and precious gemstones, reportedly lost about 200,000 US dollars in a counterfeit gold transaction in Uganda in 2017.
His cooperation with Ugandan police led to the arrest and prosecution of several suspects on charges including obtaining money by false pretences, conspiracy to defraud, impersonation and forgery.
Uganda Police has repeatedly warned international investors to exercise due diligence before engaging in gold transactions by verifying the credentials and licences of dealers. Authorities say many fraudsters target foreign buyers by posing as legitimate gold exporters, resulting in significant financial losses-URN. Give us feedback on this story through our email: kamwokyatimes@gmail.com
