An American couple has sued Kenyan businessman Julius Mwale and his wife, Kaila Mwale, accusing them of defrauding them out of $1.7 million (Sh219,300,000).
In the suit filed in the U.S. District Court for the District of Utah, Mathew and Brooke Shaw claim the Mwales lied about their financial status and the status of a “world-class” hospital project in Kakamega.
The couple states in court that they met the Mwales in February 2022 at a private dinner in Utah, where they presented themselves as extremely wealthy and well-connected.
Based on this impression, the Shaws were convinced by the Mwales to invest in several projects, including a hospital they claimed was being constructed in Kenya.
The lawsuit says Mwale falsely claimed to own luxury items like a private jet and a high-end estate. He also promised that the hospital project was successful and nearly complete.
However, when the Shaws inspected the project in August 2022, they found the hospital was incomplete and far from the advanced facility described.
The Shaws’ lawsuit details how the Mwales made false statements about the hospital’s size, the infrastructure around it, and their personal wealth.
The complaint states, “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 includes charges of fraud, negligent misrepresentation, and breach of contract.
Although Kaila Mwale initially promised to return the money, she reportedly did not follow through on a loan agreement. The Shaws are now seeking to recover at least $870,000 (Sh112,230,000) from the Mwales.
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