Uganda Arrests Seven Over Alleged $70,000 Fake Gold Scam Targeting Nigerian Businessman

Ugandan police have arrested seven suspects in connection with an alleged fake gold transaction worth $70,000, said to have targeted a Nigerian businessman. Authorities say the operation, which took place in Kampala, involved a syndicate that presented counterfeit gold to the victim in a deal that was supposed to be legitimate. The arrests followed weeks of investigations by the Criminal Investigations Directorate (CID), with assistance from the Directorate of Crime Intelligence.

According to police spokesperson Fred Enanga, the Nigerian businessman had been lured to Uganda under the pretext of purchasing high-quality gold. The suspects reportedly presented themselves as credible dealers with export capabilities and legitimate documentation. “The victim was convinced that he was dealing with an established gold trading company,” Enanga said. “Unfortunately, it turned out to be a fraudulent scheme designed to swindle him of his money.”

Investigators disclosed that the Nigerian buyer was initially shown what appeared to be genuine gold samples, after which he made an advance payment to secure the deal. The suspects allegedly produced forged export permits, assay reports, and other official-looking paperwork to support their claims. Once the payment was made, the victim was handed gold bars that were later discovered to be fake after laboratory testing.

Police revealed that the suspects are part of a wider criminal network operating across East Africa, specialising in defrauding foreign investors, particularly those seeking to purchase gold. The arrested individuals include Ugandan nationals and foreign accomplices, all of whom are now in custody as the investigation continues. Authorities have also recovered some of the forged documents, fake gold bars, and other evidence from the suspects’ hideouts.

Enanga explained that the arrests were made possible through coordinated surveillance operations that tracked the suspects’ movements from the time the Nigerian businessman arrived in the country. The police said the case underscores the growing sophistication of gold-related scams in the region, which have become a concern for both local and international law enforcement agencies.

The Ugandan police have since issued a public advisory, warning both domestic and foreign investors to exercise extreme caution when engaging in gold transactions. They urged prospective buyers to work only with licensed dealers, verify documents with the Ministry of Energy and Mineral Development, and, where possible, conduct independent gold testing before completing any payments.

Interpol Uganda has also been contacted to assist in the investigation, particularly to trace any cross-border links the syndicate may have with similar cases in Kenya, Tanzania, and the Democratic Republic of Congo. The authorities believe that dismantling the wider network will help reduce the growing number of fraudulent gold deals in the region.

Meanwhile, the Nigerian businessman, whose name has not been disclosed for security reasons, is said to be cooperating with the police in providing statements and identifying the individuals involved in the scam. Reports indicate that he had been in touch with the suspects for months before travelling to Uganda, a period during which the fraudsters built trust through phone calls, emails, and staged meetings.

The gold scam industry has been on the rise in parts of East Africa, often exploiting the high demand for precious metals in international markets. Such scams not only damage the credibility of legitimate gold traders but also pose risks to foreign investment in the region. Ugandan officials say they are determined to address the problem by tightening regulations, increasing vetting of dealers, and enhancing cooperation with other countries.

The suspects are expected to face charges of obtaining money by false pretence, forgery, and conspiracy to commit a felony under Ugandan law. If convicted, they could face lengthy prison sentences and be ordered to compensate the victim. Police say the investigation will also focus on identifying other victims who may have fallen prey to the same network.

Ugandan authorities reiterated that the crackdown on such scams will continue, with more arrests expected in the coming weeks. They urged the public to report suspicious gold deals to the police immediately, assuring that whistleblowers will be protected. “We will not allow Uganda to be used as a safe ground for international fraudsters,” Enanga said. “Our goal is to make the country safe for both local and foreign investors.”

The case has attracted significant attention in Nigeria, where gold trading is also a thriving industry. Business groups in Lagos and Abuja have welcomed the arrests, calling for greater bilateral cooperation between Nigerian and Ugandan authorities to combat such transnational crimes. They stressed that protecting investors is critical to maintaining business confidence across African markets.

As the legal process unfolds, the police have pledged to fast-track the case to ensure justice for the Nigerian businessman and to send a clear message to other would-be fraudsters. For now, the suspects remain in detention, and security agencies are optimistic that the ongoing probe will expose the full extent of the syndicate’s operations, leading to more breakthroughs in the fight against fake gold scams in East Africa.