GOLD SCAM ALERT! How British National Lost Sh3bn to Ugandan Lawyers, Conmen

By Pepper Intelligence Unit

Kampala, Uganda—In a harrowing tale of deception, loss, and legal ambiguity, a British national of New Zealand descent has come forward with claims that he was defrauded of over $800,000 (about Sh3 billion) in a series of gold-related scams orchestrated in Uganda.

The scheme allegedly involved multiple individuals, fake gold dealers, and even law firms—most notably the Kampala-based M-Smith Advocates, which is now under scrutiny for its role in facilitating the transactions.

A visit to M-Smith Advocates website shows that it was founded in 2013 by Masari Aim Smith as the managing partner. Their offices are said to be located on 3rd Floor, Suite 268, Ggaba Rd, Tirupati Mazima Mall, close to the American Embassy and are recognized by the Law Council of Uganda under the Ministry of Justice and Constitutional Affairs per list of approved law firms as at 26th September, 2024.

James Eaton, 37, a native of New Zealand and holder of British citizenship, says his ordeal began in 2019, shortly after inheriting $1.2 million from his late father.

“I’ve always dreamed of building something that uplifts a rural community—something sustainable in agriculture or mining. So I looked at Africa, where I believed the opportunities were,” Eaton told this publication in an exclusive interview.

Eaton’s ambition and optimism would soon be tested by what he describes as a “multi-layered criminal enterprise” cloaked in legitimacy and professionalism.

THE FIRST CONTACT: TRESSOR MONIDE

Eaton says he was first contacted via email by Tressor Abdul Pepo Monide, a man claiming to be a Congolese national and son of a tribal chief. According to Eaton, Monide stated he had access to 5 kilograms of community gold and was looking for foreign partners to help export and invest in the proceeds.

“Tressor Monide claimed to have gotten my contact from aid workers. He sought friendship and mutual business ties given that he was the son of a chief who had access to community gold waiting for export,” Eaton says.

Initially skeptical, Eaton says he requested documentation, proof of ownership, and due diligence. After two years of intermittent communication, he was convinced by “well-crafted documents, a professional tone, and legal assurances” made possible through M-Smith Advocates.

“I asked for legal representation on both ends. Monide came with lawyers. They had stamps, bank letters, legal contracts—it all seemed legitimate,” Eaton recalled.

The agreement, signed on June 24, 2020, stipulated the sale of 5kgs of gold at $25,000 per kg. Eaton was to pay $30,000 upfront for documentation, with the balance of $95,000 to be paid upon successful delivery of the gold to New Zealand.

Eaton says all financial transactions were routed through M-Smith Advocates, a law firm registered with the Law Council of Uganda and operating out of Tirupati Mazima Mall on Ggaba Road.

“I wired the money to their bank account at GTB Uganda, Kira Road branch,” he explained.

But six months passed. No gold arrived. Instead, Eaton, trading under a firm NZ Equity and Investments Ltd (109a Hospital Rd, Blenheim New Zealand), received repeated requests for more payments ranging from USD50, 000 up to USD80,000 at a time.

“It felt like I was stuck in a tunnel with no light,” Eaton said. “But I kept paying, thinking maybe I was just dealing with bureaucratic red tape.”

A DUBIOUS TRIP TO DUBAI

Desperate for answers, Eaton flew to Dubai after Monide claimed that the gold had been intercepted and that his “emergency presence” was required to resolve issues with Arab partners. There, he met Humaid Said Mansoor Hamrashidi, whom Monide introduced as a facilitator whom he even paid about USD20,000. The duo later disappeared with the money, refusing to refund Eaton or acknowledge any wrongdoing.

“Naturally after I paid all his hotel and flights, Tressor flew home for a ‘family emergency’ claiming to me that his daughter had died, and that I had to pay for his flights back to Kampala, which I then did. Tressor and Humaid then disappeared with my money, and both of them refused to refund me anything or that they had even done anything at all with me,” he painfully narrated.

MORE SCAMS, MORE LOSSES

Still hopeful, Eaton expanded his search for honest partners across West Africa, including Ghana, Sierra Leone, Ethiopia, Cameron, Nigeria and Botswana—but the result was the same. One of the firms he dealt with in Cameron is Mbalangi local gold miners represented by Ndeh Mome Joseph as CEO.

“I lost between $25,000 and $125,000 . Every time, it was someone new, always with great documents and stories. I now realize it’s a network targeting people like me—people who want to help and invest,” he said.

RETURNING TO UGANDA — THE CYCLE REPEATS

In a final attempt to retrieve his investment, Eaton returned to Uganda. He was advised that Ugandans were ‘good devils’.

In his search, he allegedly met one Duncan Deogratious Ibanda on an online gold forum, who claimed to supply gold alongside his agricultural business.

“Duncan said he was an agriculturalist who also dealt in gold. I gave him $20,000 to ship a sample. Of course, he disappeared too,” said Eaton.

He was also again contacted by people claiming to be part of a security team that had “captured Monide.” Eaton traveled to Kampala to meet the team. But it turned out to be a scam also.

In the process he also met Drake Muwanguzi, another alleged fraudster.

“He asked for $20,000 to bring 1kg of gold to London. Nothing came. I later learned Drake was part of the original Monide ring. Even the alleged arrest was fake,” Eaton revealed.

THE LONDON HEIST: $480,000 VANISHES OVERNIGHT

In one of the most devastating incidents, in 2024, Eaton was contacted by a man named William, also known as “Prezda,” who claimed to be a legitimate gold dealer. They had gotten in contact from an online trade website (www.tradeportal.com).

The two would later meet in London in early 2024.

“He had a UK passport, documents, everything. We agreed on a 10kg trade, and I paid $480,000 after inspecting the gold,” Eaton recounted.

That night, Eaton’s hotel room was broken into and both the gold and cash were stolen. The matter was reported to UK police, leading to the arrest of an accomplice named Eric (A Philippine national), and now facing grand larceny charges. William Prezda remains at large and is believed to be hiding in Uganda.

ROLE OF M-SMITH ADVOCATES UNDER SCRUTINY

Central to Eaton’s claims is the role of M-Smith Advocates, the law firm that handled the initial agreements and payments. Eaton alleges the firm not only processed funds but also provided fraudulent documentation that made the scam appear legitimate.

“Even though the law society lists M-Smith as legitimate, it is fake. I went to Turipati Mall, no lawyer was there. It is all fake scam rings working together to produce all fake documents. Fake lawyers! Fake everything!”

Eaton alleges despite allegedly paying USD120,000 to the law firm for legal and documentation process services.

 

The firm’s founder, Masari Aim Smith, denied the accusations in a phone interview. He admitted handling Eaton’s transactions but insisted he merely followed client instructions.

He also alleges that Eaton never paid the law firm for their services.

“This is something concerning my business. That man [Eaton] had his issues and I helped him. The cheating happened in Dubai. But somehow I don’t who very determined to include my business. Like all transactions I delivered his money where he wanted it delivered. I was never even paid,” and went on to add when he was asked about the USD120,000 payment, “ Never, the money he sent on my account was to be delivered to some group from Congo by his partners. Then they proceeded to Dubai. I provided all the paperwork to him. He was happy and promised to pay me, which he never did. They all went away to Dubai and transacted without me. I think someone just wants to spoil my law firm name for nothing. This is a matter to handle as Ugandans without necessarily tarnishing the reputation of my law firm.”

But Eaton insists the law firm was more involved than they claim.

“Everything was fake. The contracts, the stamps. I went to their listed office, and no one was there. It was a ghost office. They were in on it,” he said.

OTHER LEGAL PLAYERS INVOLVED

Eaton also implicated another lawyer, Edwin Karuhanga, who he claims pocketed $10,000 without providing any legal services.

He also at one point put a cash reward for anyone who could catch the alleged fraudsters. He was later to be contacted by one Ocan Brian Tusingwire, who through another city law firm Kabito & Co. Advocates located on Plot 32B, Ntinda Martyr’s Road, Kampala, Uganda, presented him with an invoice of USD4000 to help him with Legal Representation and Related Services – Case Regarding Fraudulent Gold Trade Transactions.

Ocan and his friend got in contact with me and offered to take on the case, but they said it would be done through a law firm and they would handle expenses so I don’t have to worry about trust.  But after a while they demanded money [USD10000] and I suspected they too were fraudulent and I ignored them,” Eaton further told this publication.

POLICE COMPLAINT AND LACK OF PROTECTION

Eaton filed a complaint at Entebbe Police Station, reference SD/REF 97/16/07/24, but says no meaningful action was taken. He fled Uganda after receiving death threats, which he claims continue to this day.

“I was receiving death threats. I had to leave the country. I don’t feel safe returning until these men are arrested,” he said.

He added: “In Kampala, I met people claiming to be security operatives who promised to arrest Monide. That, too, turned out to be another scam.”

SEEKING JUSTICE

Eaton is now seeking help to bring the scammers to justice, not only to recover his losses but also to prevent others from falling victim to similar scams.

He is willing to provide documentation and testify in person, but fears for his safety due to weekly death threats from the alleged scammers.

“I am seeking to have these men brought to justice, not just to recover the money, but also to put a stop to the destruction of wealth that honest people are experiencing when trying to establish legitimate business in Uganda. This strangles business, and investment in your country, and destroys investors in ours.

I am grateful for any help received, and am available to provide any documentation at proof, including signed contracts, or legal statements from UK or NZ police. I am also available to testify in person if necessary, however due to security concerns I am reluctant to return to Uganda until these men are brought to justice. I still receive weekly death threats from these criminals.”

For Eaton, the experience has been devastating. He has lost a significant amount of money, which was an inheritance from his late father. He is now working long hours to keep his business afloat and is seeking help to recover his losses.

“Currently, I am back in New Zealand working hard to keep my business afloat, I work at least 70hours a week in the agricultural field, and machinery operation. The funds lost to me were an inheritance I received from my late father, now totalling $1.2m, $800,000 of which were directly in Uganda,” he said.

James Eaton’s experience is not isolated. According to Foreign Investment experts, as Uganda positions itself as a destination for foreign direct investment—especially in extractives and precious metals—cases like these undermine investor confidence and damage the country’s international image.

“If authorities fail to act decisively, Uganda risks being viewed not just as a high-risk investment destination—but as a haven for transnational fraud rings operating with impunity,” they say.

MORE DETAILS TO COME!

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