A 64-year-old Canadian national, Michel Faille, has been remanded to Luzira Prison on charges of obtaining money by false pretences and dealing in minerals without a mineral dealer’s licence.
Faille appeared before Buganda Road chief magistrate Ritah Neumbe Kidasa on Wednesday as court was updated on the status of investigations into the charges against him.
The prosecution alleges that Faille and others still at large, between July and October 2025, fraudulently obtained $1.5 million (about Shs 5.6 billion) from Abdulkadir Mohamed Nur.
According to the prosecution, the accused falsely claimed that they would facilitate the shipment of 16 kilogrammes of gold to Dubai.
In a separate count, the prosecution alleges that during the same period, Faille was found in possession of 740 kilogrammes of gold nuggets in Kololo, Kampala, without a valid mineral dealer’s licence.
State Attorney Grace Amy told court that investigations had been completed and asked for an adjournment to allow the prosecution to prepare for the hearing. She also informed court that the state had disclosed the evidence it intends to rely on against Faille.
Faille’s lawyers told court that they had only received instructions to represent him on Tuesday and needed time to consult their client and prepare an application for bail.
The prosecution had earlier indicated that the parties could explore reconciliation, but Faille told court that he did not understand what was meant by reconciliation.
Kidasa further remanded Faille to Luzira Prison until August 20, 2026, when the case will return for hearing and consideration of his bail application. Court also heard that Faille is suffering from prostate cancer and arthritis, with his lawyers raising concerns that prolonged detention could negatively affect his health.
The case adds to a series of gold-related fraud cases involving foreign investors in Uganda.
In one of the prominent cases, Canadian national Clifford Max Potter reportedly lost about $1 million between 2016 and 2019 after entering into a gold purchase agreement with Ugandan businessman Stephen Bairukanga.
Investigations by the Criminal Investigations Directorate (CID) reportedly established that the money was deposited into accounts controlled by Bairukanga, but the promised gold was never delivered.
The case also triggered investigations into whether the financial institutions involved had 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 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.
Police have repeatedly warned foreign investors to exercise due diligence before entering gold transactions, including verifying the credentials and licences of dealers.
Police say fraudsters often target foreign buyers by posing as legitimate gold exporters, resulting in substantial financial losses.
