Canadian citizen lands in Ugandan prison over alleged $1.5 million gold shipment scam to Dubai

Michel Faille appeared before Chief Magistrate Ritah Neumbe Kidasa at the Chief Magistrate’s Court in Kampala on July 31, 2026, and denied charges of obtaining money by false pretences and dealing in minerals without a licence.

Faille, who resides at Mestil Hotel in Nsambya, Kampala, was remanded until August 12, 2026, as police continue investigating the case.

According to the charge sheet, Faille and several suspects still at large allegedly obtained the money from Abdulkadir Mohamed Nur at Acacia Mall in Kamwokya, Kampala, between July and October 2025.

Prosecutors allege that the suspects promised to facilitate the shipment of 16 tonnes of gold to Dubai, but the transaction never took place. Faille denied the charges when they were read to him.

In a second count, prosecutors accuse Faille and his alleged accomplices of possessing 740 kilogrammes of suspected gold nuggets in Kololo, Kampala, during the same period.

The prosecution said they did not hold a valid mineral dealer’s licence, as required under Uganda’s Mining and Minerals Act, 2022.

State prosecutor Grace Amy Namuganza asked the court for more time to allow police to complete their inquiries.

“Investigations are still ongoing,” Namuganza told the court.

Chief Magistrate Kidasa granted the request and remanded Faille until August 12, when the case will return to court for mention and an update on the investigations.

The allegations highlight the risks surrounding Africa’s informal gold trade, where foreign investors are sometimes drawn into deals involving large mineral consignments, export promises and intermediaries claiming access to regional supply chains.

Similar cases have surfaced elsewhere in East Africa.

In Kenya, detectives arrested a suspect in February 2026 over an alleged $217,900 gold scam involving an American national.

Investigators said the victim paid for 495 kilogrammes of gold that was never delivered, while the suspects allegedly used company and legal documents to make the transaction appear genuine.

Meanwhile, in another case reported in May 2026, an American investor allegedly lost KSh55.7 million after being promised 400 kilogrammes of gold bars. Authorities said the suspects stopped communicating after receiving the money.

Together, the cases point to a recurring regional pattern in which alleged dealers promise large gold consignments, overseas delivery and supporting documents before the transactions collapse.

Faille has denied the charges and remains innocent unless proved guilty by a court.