Last Updated on March 4, 2026 by carolyne juma
Julius Mwale Accused in $1.7M Fraud Scandal Targeting U.S. Investors
Update: This case was first reported in October 2024 when entrepreneur Julius Mwale faced allegations of defrauding American investors of approximately $1.7 million in a disputed investment scheme.
Kenyan-born entrepreneur Julius Mwale, widely known for promoting the multi-billion-dollar Mwale Medical and Technology City (MMTC) project in Kakamega County, has been drawn into a controversy involving serious fraud allegations.
Mwale, who has often described himself as a billionaire investor with interests in healthcare and technology, is now facing accusations that could significantly damage his reputation and cast uncertainty over the future of his ambitious projects.
read:Bishop Mark Kariuki’s Deliverance Church Linked to Sh10B Imani Estate Land Fraud Scandal
$1.7 Million Fraud Allegations
The controversy centers on claims by American citizens Mathew Shaw and Brooke Shaw, who allege they were defrauded of approximately $1.7 million (about Sh222 million).
According to the allegations, Mwale convinced the couple to invest in his projects after presenting himself as a wealthy entrepreneur with strong connections to influential global leaders and investors.
The investors claim that many of these claims were misleading or fabricated.
How the Relationship Began
The Shaws first met Julius Mwale and his wife Kaila Mwale during a private dinner hosted by Gordon Bowen in Holladay, Utah, on February 18, 2022.
During the meeting, the Mwales reportedly described themselves as extremely wealthy individuals with extensive business networks and generational wealth.
They also spoke about their ambitious projects, including:
-
The Mwale Medical and Technology City (MMTC) project in Butere, Kakamega County
-
A proposed battery manufacturing plant in the Democratic Republic of Congo
-
A planned 5,000-bed hospital project in Kenya
Claims of Luxury and Global Connections
The investors allege that Julius Mwale reinforced his credibility by presenting evidence of an extravagant lifestyle.
According to the claims, the Mwales spoke about owning:
-
A wine collection valued at $250 million
-
A jewelry collection worth about $870 million
They also allegedly referenced connections with prominent figures such as:
-
U.S. Senator Mitt Romney
-
Ruth Porat, Chief Financial Officer of Google
-
David Beasley, former head of the UN World Food Programme
The Shaws say they were also shown videos that appeared to show the Mwale family using a private jet, which they later learned had been leased.
Investment Opportunity Pitch
According to court documents cited in the dispute, Mwale later encouraged the Shaws to invest in his ventures.
During a meeting in San Jose, California, in March 2022, Mwale allegedly presented the investors with an opportunity to help finance infrastructure projects connected to his African developments.
He reportedly claimed that several African countries had granted him land for the development of energy-efficient cities.
The Shaws say they were told the funds would be used for geological surveys related to a battery manufacturing project in the Democratic Republic of Congo.
Promises of “Generational Wealth”
The Mwales allegedly promised that the Shaws would benefit from what they described as “generational wealth.”
Mwale reportedly proposed structuring the funds as a loan with a 20 percent annual return, while suggesting the investment could potentially grow to ten times the original amount.
The funds were allegedly to be managed through Mwale’s company Tumaz and Tumaz, which he claimed had a valuation of $60 billion.
$1.7 Million Investment
According to the allegations, the Shaws began transferring money in April 2022.
Between April and June 2022, they reportedly invested a total of $1.7 million.
However, the investors claim that the promised projects and financial returns never materialized.
Investors Claim They Were Misled
After concerns arose, the Shaws began investigating Mwale’s background.
They claim they discovered inconsistencies involving:
-
Business partnerships
-
Property ownership
-
Claims about his wealth and assets
The investors allege that many of the representations made during meetings were misleading or inaccurate.
read:Homa Bay Ghost Road Scandal: KSh 200M Fraud Exposed
Lawsuit Filed in New York
The Shaws later filed a lawsuit in New York, seeking to recover the money they claim was lost in the alleged scheme.
Court filings reportedly detail the meetings, financial transactions, and representations made during the investment discussions.
Questions Over Business Claims
Some of Mwale’s earlier business claims have also faced scrutiny.
For example:
-
Columbia University confirmed Mwale attended the institution in 2004 but did not receive a degree.
-
His company SBA Technologies Inc., which he described as a multi-billion-dollar firm, was never listed on a stock exchange.
The company was dissolved in 2010 and later revived.
Mwale also applied for patents for secure transaction technology, but the United States Patent and Trademark Office rejected the application in 2007, citing lack of novelty.
Past Legal Disputes
Court records in the United States also show previous legal disputes involving Mwale.
These include:
-
A New York lawsuit over unpaid rent totaling more than $200,000
-
Investment disputes involving individuals who claimed they were misled about SBA Technologies
In some cases, courts ordered Mwale to refund investors.
Focus on Kenyan Projects
Following legal challenges in the United States, Mwale shifted focus to Kenya.
In 2015, he launched the Mwale Medical and Technology City project in Kakamega County through Tumaz and Tumaz Enterprises Limited.
The project was marketed as a futuristic smart city centered around healthcare and technology.
Uncertain Future
The ongoing allegations have raised concerns among observers about the credibility of Mwale’s ventures.
While the entrepreneur continues to promote his projects publicly, the legal dispute with the American investors could significantly affect his reputation and business interests.
As investigations and legal proceedings continue, the outcome of the case may determine whether Julius Mwale’s ambitious vision survives the controversy surrounding it.
read:Alice Nyawira Charged With Defrauding Job Seekers
Kenya Court News Today – Live High Court & DPP Updates click here 👉 /kenya-court-news-today