crime 12 August 2026 The Observer (Uganda)

Canadian National Detained in Uganda for Alleged $1.5 Million Gold Scam

A 64-year-old Canadian citizen, Michel Faille, is being held at Luzira Prison facing charges related to a significant gold fraud scheme. He is accused of obtaining $1.5 million by false pretences and dealing in minerals without the required license. Source: https://observer.ug/news/canadian-national-remanded-over-alleged-1-5m-gold-scam

Michel Faille, a 64-year-old Canadian national, has been remanded to Luzira Prison in Uganda. He faces serious charges including obtaining money by false pretences and engaging in mineral trade without a valid dealer’s license.

Appearing before the Buganda Road chief magistrate, Faille heard allegations that he and accomplices, still at large, defrauded Abdulkadir Mohamed Nur of $1.5 million (approximately Shs 5.6 billion) between July and October 2025. The prosecution claims the accused falsely promised to facilitate the shipment of 16 kilograms of gold to Dubai.

In a separate accusation, Faille is alleged to have been found in possession of 740 kilograms of gold nuggets in Kololo, Kampala, during the same period, without holding the necessary mineral dealer’s license.

Investigations into the matter have reportedly concluded, and the prosecution has disclosed its evidence. Faille’s legal team, having only recently been instructed, requested time to consult with their client and prepare a bail application. The court was also informed that Faille suffers from prostate cancer and arthritis, raising concerns about his health during detention.

This case is part of a pattern of gold-related fraud incidents involving foreign nationals in Uganda. Authorities have repeatedly advised foreign investors to conduct thorough due diligence, including verifying the licenses and credentials of gold dealers, to avoid falling victim to such scams.