By Spy Uganda
State House Anti Corruption Unit last evening arraigned before the Buganda Road Chief Magistrates Court, Abdul Aziz Yousif Mohammad Adam aka Aziz, a Sudanese nationality on charges of Obtaining Money by False Pretense.
He was remanded until 28/11/2024.
The accused and others still at large in the months of September and October 2024, within the areas of Kampala district, with intent to defraud, obtained USD 650,000 approximately over UGX2.3 billion from Osman Hussan an investor from Dubai, by falsely pretending that they were to sell gold to him whereas not.
Gold scams in Uganda are a significant problem, as the country has rich mineral resources, including gold, which has attracted both legitimate and fraudulent businesses.
These scams typically prey on unsuspecting investors, both local and foreign, by promising lucrative returns or access to high-quality gold, but ultimately leading to financial losses. Here’s an overview of common gold scams in Uganda:
1. Fake Gold Sales
- Description: Scammers often pose as gold traders or mining company representatives and offer gold for sale at attractive prices. Victims are asked to pay upfront for the gold, but when the transaction takes place, either the gold is fake (such as gold-plated materials or low-quality metals) or the gold never materializes.
- Tactics Used: The scammer may show fake certificates of authenticity, use forged documents, or even conduct “demonstrations” of fake gold being weighed and tested in front of the victim. Once payment is made, the scammer disappears.
2. Investment Scams (Ponzi Schemes)
- Description: These scams involve individuals or companies offering opportunities to invest in gold mining or trading with the promise of high returns. However, these schemes do not involve actual mining or trading; instead, earlier investors are paid using the funds from newer investors. Eventually, the scheme collapses when new investors stop coming in or when the scammer disappears with the funds.
- Tactics Used: Scammers often use convincing marketing materials, fake mining operations, or testimonials to lure in unsuspecting investors.
3. Fake Gold Mines
- Description: Scammers may set up fake gold mines or mining operations and invite investors to buy shares or get involved in mining projects. In reality, there is no real mine or gold extraction process taking place. The victims lose their money, and the scammers often disappear once the money has been collected.
- Tactics Used: Scammers sometimes fabricate false documents or offer tours of fake mining sites to show the supposed progress of mining operations.
4. Gold Refining Scams
- Description: Some fraudsters offer to refine raw gold for investors at a low cost but provide substandard services, resulting in the loss of both the gold and the money. Often, the refining process is either a scam itself or the refiners steal the gold.
- Tactics Used: Fake refining certificates, fake facilities, or even the substitution of real gold with counterfeit material after the refining process are common tactics.
5. Gold Smuggling Scams
- Description: In Uganda, there are also scams involving the illegal export of gold. Scammers offer to arrange smuggling of gold abroad, promising high profits for those involved. The gold is often not even in the country, or is seized by authorities during an illegal transaction.
- Tactics Used: Scammers might offer to help investors or buyers get gold at lower prices by cutting corners with regulations or government permits, only to leave the investor without any gold.
6. The “One-Time Deal” Scam
- Description: This scam targets international buyers or investors. A scammer presents a one-time offer for gold, often at a drastically lower price than market value. Once the deal is agreed upon, the victim is instructed to make a payment, but after payment is sent, the scammer vanishes, and the gold never arrives.
- Tactics Used: The scammer uses urgency or limited-time offers to push the victim into making quick, unwise decisions without conducting proper due diligence.
