American couple Mathew and Brooke Shaw have filed a lawsuit against Kenyan businessman Julius Mwale and his wife Kaila Mwale, accusing them of defrauding them of $1.7 million (Sh219.3 million).
The lawsuit, submitted to the U.S. District Court for the District of Utah, alleges that the Mwales misrepresented their financial status and the state of a supposed “world-class” hospital project in Kakamega County.
According to the complaint, the Shaws first met the Mwales in February 2022 at a private dinner in Utah. The Mwales, portraying themselves as billionaires with extensive assets and connections, convinced the Shaws to invest in several projects, including a major hospital they claimed to have constructed in Kenya.
The lawsuit outlines how Julius Mwale falsely claimed ownership of assets such as a private jet and a luxury estate, and made numerous assurances about the hospital project’s success and scale.
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However, an inspection in August 2022 revealed that the hospital was incomplete and far from the advanced facility the Mwales had described.
The alleged misrepresentations included false claims about the hospital’s size, the completion of surrounding infrastructure, and the existence of significant personal wealth.
“As a direct and proximate result of the Mwales’ conduct, the Shaws have been damaged in an amount to be determined at trial, but which includes at a minimum the $870,000 the Mwales still owe to the Shaws,” the lawsuit states.
The lawsuit brings charges of fraud, negligent misrepresentation, and breach of contract.
After initially agreeing to return the invested money, Kaila Mwale allegedly failed to make the required payments under a loan modification agreement. The Shaws are now seeking to recover at least $870,000 (Sh112.2 million) from the Mwales.
