Ugandan Police Arrest Seven Over $70,000 Fake Gold Scam Targeting Nigerian Businessman

Kampala, Uganda — Authorities in Uganda have arrested seven people accused of defrauding a Nigerian businessman of $70,000 in a sophisticated counterfeit gold operation, underscoring the persistence of precious metals scams across East Africa’s informal trade networks.

The State House Anti-Corruption Unit (SH-ACU), working with the Criminal Investigations Directorate, said the arrests came after a sting operation conducted in partnership with the victim, identified as Mark Gbillah.

Elaborate Fraud Involving Fake Gold
Investigators allege that the suspects — four Congolese nationals and three Ugandans — posed as agents and suppliers for two purported companies, Legacy Refinery Limited and Emerod Agency Limited. They allegedly promised to supply seven kilograms of gold, but neither company had any legitimate gold to sell.

Those arrested have been named as Paluku Kisasi, Safari Akonkwa, Isaac Mpende, Abdul Madjid Kahirima, Mabwongo Prince, Kajjubi Tevin Kyome, and Tibasiima Barbra, also known as Katushabe Sharon.

How the Arrests Happened
According to SH-ACU senior officer Bamwiine Muhorozi, the operation unfolded on August 12 after Gbillah alerted authorities. “We worked with the complainant to arrange a controlled meeting, which enabled us to detain the suspects before they could demand additional funds,” he said.

A search of a rented property in Muyenga, an upscale suburb of Kampala, yielded about 150 kilograms of counterfeit gold bars and imitation nuggets. Investigators believe these were intended to lure additional investors.

Part of a Larger Trend
The arrests come amid a string of high-value gold fraud cases in Uganda. Earlier this year, a Turkish investor reportedly lost $150,000 in a similar scheme, while in mid-2024 another businessman was conned out of $105,000 over a fictitious 20-kilogram gold deal.

Regional figures show that between early 2021 and March 2022, investors in Uganda and neighbouring Kenya lost an estimated $25 million to comparable scams, with some cases involving as much as $8 million. Weak regulatory oversight and strong demand for gold in East Africa have made the sector a target for fraudsters.

Bamwiine noted that while the SH-ACU has intercepted numerous scams in recent years, the latest arrests were significant because the suspects were caught during the transaction. He urged investors to conduct thorough due diligence and verify gold-related deals with the appropriate authorities.

The suspects remain in custody and are expected to be formally charged in court in the coming days. Officials say they hope the arrests will deter further exploitation in the region’s lucrative but loosely regulated gold trade.