by Brian Nzomo in Global News, Investment, Kenyan News
An American couple, Mathew and Brooke Shaw, is accusing US-based Kenyan businessman Julius Mwale and his wife, Kaila Mwale, of defrauding them of $870,000 (approximately KSh 112 million), according to an affidavit filed in the district court of Utah.
The Shaws allege that the Mwales received $1.7 million from them in 2022 after misleading them into believing the funds would be invested in a geological survey in the Democratic Republic of Congo. This survey was purportedly intended to assess the viability of building infrastructure for a battery manufacturing plant in the area, with the Mwales assuring the couple that the $1.7 million would be treated as a loan with a 20% annual return.
The court documents reveal that the Mwales falsely presented themselves as billionaires to entice the Shaws into investing in questionable projects. “The Mwales claimed their programs included developing the surrounding area, such as building a luxury golf course on donated land and constructing rental homes on farmers’ properties to generate income,” the affidavit states.
They also claimed to have built “the largest, most advanced hospital in the world,” featuring state-of-the-art technology, 5,000 beds, and an advanced cancer treatment facility. However, during their visit to Kenya in August 2022, the Shaws discovered that these projects, including the hospital, were fraudulent. They reported that only one wing of the hospital was operational, resembling a dilapidated clinic without the promised cancer facility.
After realizing the true nature of the projects, the Shaws requested to withdraw their funding in September 2022. The repayment was delayed for 120 days, and by March 2023, the debt remained unpaid. Despite multiple loan modification agreements with the Mwales, $870,000 still owed as of January this year.
Julius and Kaila Mwale reside in the US and own properties in California and New York. The Shaws are seeking a jury trial to recover damages, with an affidavit signed by Kaila Mwale in April last year acknowledging the debt owed to them.
“The circumstances of this case are such that it would be unjust for the Mwales to retain the benefit conveyed by the Shaws without paying for it. Equity demands that the Shaws be compensated for the benefit they conferred upon the Mwales by the return of at least $870,000,” the court document concludes.
Julius Mwale is known for owning the Mwale Medical and Technological City, which was slated for demolition in 2017 by the Kakamega county government for allegedly violating local planning regulations. The demolition notice was subsequently blocked by the high court.
