GOLD SCAM SHOCKER! Mestil Hotel Resident Canadian Remanded Over Alleged Sh5.6Bn Fake Gold Con That Fleeced Somali Defence Minister
Michel Faille (L), a consultant and resident of Mestil Hotel in Nsambya, Makindye Division, Kampala Uganda was on Friday evening arraigned before the Buganda Road Chief Magistrate's Court, where he denied charges of obtaining money by false pretences from Somali Defence Minister Abdulkadir Mohamed Nur (R)
KAMPALA: A Canadian national has landed behind bars after allegedly masterminding a multi-billion-shilling fake gold deal that reportedly fleeced Somalia’s Defence Minister of US$1.5 million (about Shs5.6 billion).
Michel Faille, 64, a consultant and resident of Mestil Hotel in Nsambya, Makindye Division, Kampala Uganda was on Friday evening arraigned before the Buganda Road Chief Magistrate’s Court, where he denied charges of obtaining money by false pretences and dealing in minerals without a mineral dealer’s licence.
Chief Magistrate Ritah Neumbe Kidasa remanded Faille to Luzira Prison until August 12, 2026, when the case will return to court for mention and an update on ongoing investigations.
Investigators are also hunting for several Ugandan suspects, whose identities have been withheld for now as investigations continue. However, the case has taken another intriguing twist, with some sources claiming the Canadian accused may himself have been duped by his Ugandan collaborators, who are now on the run as we shall reveal in our subsequent publication.
Prosecution alleges that Faille and other suspects still on the run, between July and October 2025 at Acacia Mall in Kamwokya, Kampala, fraudulently obtained US$1.5 million from Abdulkadir Mohamed Nur after falsely claiming they would facilitate the shipment of 16 tonnes of gold to Dubai.
Court also heard that during the same period, Faille was allegedly found with 740 kilograms of nuggets suspected to be gold in Kololo, Kampala, without a valid mineral dealer’s licence.
State Attorney Grace Amy told court that investigations are still ongoing and requested more time for police to complete inquiries before the matter proceeds.
The case is the latest in a string of high-profile gold fraud scandals that have left foreign investors counting massive losses in Uganda.
One of the biggest previous victims was Canadian national Clifford Max Potter, who reportedly lost about US$1 million between 2016 and 2019 after entering 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 sparked 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, also reportedly lost about US$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, including Stellah Birungi Dindi, David Kironde alias Sam Ssimbwa Daudi, Richard Kamugisha, Nasser Kibirige Kilimana and Yazidi Kabonge Wamala, on charges of obtaining money by false pretences, conspiracy to defraud, impersonation and forgery. However, that case has since stalled.
Uganda Police has repeatedly warned international investors to carry out thorough due diligence before entering gold transactions by verifying the credentials and licences of dealers, saying fraudsters continue to target foreign buyers by masquerading as legitimate gold exporters.
The alleged victim, Abdulkadir Mohamed Nur, is no ordinary investor. He is Somalia’s serving Minister of Defence, a position he has held since 2021, and is widely known for spearheading his country’s military campaign against the terrorist group Al-Shabaab.
Before becoming Defence Minister, Nur served as Minister of Justice from September 2020 to 2021. He also worked as Senior Adviser to the Speaker of Somalia’s House of the People between 2018 and 2020, and previously served as Deputy Director of the National Intelligence and Security Agency (NISA) before briefly acting as its Director.
His diplomatic career includes serving as Chargé d’Affaires, First Counsellor, First Secretary and Second Secretary at the Somali Embassy in Ankara, Turkey, while earlier in his career he headed security at Villa Somalia, the country’s Presidential Palace.
Nur also played a key role in signing the Defence and Economic Cooperation Framework Agreement between Somalia and Turkey on February 8, 2024, alongside Turkish Defence Minister Yaşar Güler, strengthening military and economic cooperation between the two countries.
A graduate of Ankara University with a Bachelor’s Degree in International Relations, Nur speaks Somali, English and Turkish, and is married with three children.
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