Sudanese National Faces Charges in $650,000 Gold Scam in Uganda

KEY POINTS

• Abdul Aziz Yousif Adam accused of defrauding Dubai businessman $650,000 in gold scam.
• Adam allegedly used falsified documents to deceive businessman into paying for non-existent gold.
• The case highlights growing fraud risks in Uganda’s gold trade sector.

Abdul Aziz Yousif Mohammed Adam, a 52-year-old Sudanese national, has been remanded to Luzira Prison on allegations of defrauding a Dubai-based businessman of about UGX2.4 billion ($650,000) in a gold trading scheme. 

Adam, also known as Aziz, was arraigned before Senior Principal Magistrate Jalia Basajabalaba, where he pleaded not guilty to charges of obtaining money by false pretense. 

Elaborate gold fraud scheme 

According to pmldaily, prosecutors allege that Adam, in collaboration with unidentified accomplices, presented himself as a legitimate gold dealer to Osman Hussan, a businessman from Dubai. 

The scam reportedly began in September 2024, when Hussan’s relative, Abdel Azim Hussien Mohamad Hosman, contacted Adam about purchasing 20 kilograms of gold. 

Adam is accused of claiming he possessed 785 kilograms of pure gold and used falsified documentation, including a safe-keeping receipt from Exxaro Minerals International Limited, to substantiate his claim.

These documents were allegedly designed to convince Hussan of the gold’s authenticity. 

Payments and promises 

The scam involved multiple transactions, with Hussan allegedly paying $18,000 for accommodation, $5,000 as a partial payment for the gold, and $82,000 for smelting processes.

Additional sums were purportedly charged as taxes and brokerage fees, escalating the total amount to approximately $650,000. 

Despite the payments, Hussan never received the promised gold. The fraud was uncovered when he reported the incident after failing to secure the delivery of the consignment. 

 Legal proceedings and next steps

Authorities continue to investigate the case to uncover other accomplices while the case has been adjourned until November 28 of this year.

This case highlights the recurring fraudulent activities in Uganda’s gold trade sector. Criminals are increasingly targeting this sector because of its lucrative nature.