Nairobi — American couple Mathew and Brooke Shaw have filed a lawsuit against a Kenyan businessman Julius Mwale and his wife Kaila Mwale, accusing them of defrauding them out of $1.7 million (Sh219,300,000).

The suit, filed in the U.S. District Court for the District of Utah, alleges that the Mwales misrepresented their financial status and the status of a purported "world-class" hospital project in Kakamega county.

According to the complaint, the Shaws first encountered the Mwales in February 2022 during a private dinner in Utah.

The Mwales, presenting themselves as billionaires with vast assets and connections, persuaded the Shaws to invest in a series of projects, including a major hospital they claimed to have built in Kenya.

The lawsuit details how Julius Mwale falsely represented ownership of assets such as a private jet and a luxury estate, and made numerous assurances about the success and scale of the hospital project.

Despite these claims, an inspection in August 2022 revealed that the hospital was incomplete and far from the advanced facility the Mwales had portrayed.

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,"read the lawsuit in part.

The lawsuit includes allegations of fraud, negligent misrepresentation, and breach of contract.

After initially agreeing to return the invested money, Kaila Mwale is said to have failed to make the required payments under a loan modification agreement.

The Shaws are now seeking to recover at least $870,000 (Sh112,230,000 ) from the Mwales.