American couple Mathew and Brooke Shaw have filed a lawsuit in the U.S. District Court for the District of Utah against Kenyan businessman Julius Mwale and his wife Kaila Mwale, accusing them of defrauding them of $1.7 million (approximately Sh219,300,000).
The complaint alleges that the Mwales deceived the Shaws by misrepresenting their financial status and the development of a so-called “world-class” hospital project in Kakamega County.
The Shaws first met the Mwales at a private dinner in Utah in February 2022, where the Mwales, presenting themselves as wealthy and influential, convinced the Shaws to invest in several ventures, including the purported hospital in Kenya.
According to the lawsuit, Julius Mwale falsely claimed ownership of high-value assets such as a private jet and a luxury estate, and made numerous assurances regarding the hospital project’s success and scale.
However, an inspection in August 2022 revealed that the hospital was incomplete and did not match the advanced facility the Mwales had advertised.
The lawsuit highlights several false claims made by the Mwales, including exaggerated descriptions of the hospital’s size, incomplete surrounding infrastructure, and their supposed significant personal wealth.
The legal action includes allegations of fraud, negligent misrepresentation, and breach of contract.
The Shaws are seeking damages, including at least $870,000 (about Sh112,230,000) that the Mwales allegedly still owe them.
After initially agreeing to refund the invested money, Kaila Mwale is reported to have failed to comply with the terms of a loan modification agreement.
The Shaws are now pursuing legal remedies to recover their investment and address the alleged misconduct.
