MINNEAPOLIS, Minnesota (AX) — Recent developments in Lakeville, Minnesota, have sent shockwaves through the local Somali-American community. A judge has mandated that Nolosha Development and its CEO, Abdiwali Abdullahi, refund Somali-American families who paid significant deposits for homes that, tragically, were never constructed. These deposits, which amounted to tens of thousands of dollars each, were made for what was touted to be a transformative housing project that ultimately failed to secure land, permits, or financing.
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On Monday, Judge Christian Sande of Dakota County issued the ruling following a default judgment in a civil fraud lawsuit initiated by Minnesota Attorney General Keith Ellison. This case arose after whistleblowers brought troubling allegations of fraudulent practices to the attention of the authorities in 2023. The court’s findings were stark; Nolosha Development was found in violation of multiple state laws, including the Prevention of Consumer Fraud Act and the False Statement in Advertising Act, after repeatedly failing to comply with court orders and neglecting to provide crucial documents.
“The Court gave Defendants several unequivocal opportunities to defend themselves and to participate in this lawsuit,” Judge Sande observed in his ruling. “Instead, Defendants chose to ignore the Court’s orders and refuse to comply.” It is a disconcerting reminder of accountability—or the lack thereof—when promises made are not honored.
The upcoming hearings will address the amount owed. A staggering number of at least 160 families, many of whom are Somali immigrants, are caught in this web of deceit. They collectively handed over more than $1 million in deposits, with individual amounts soaring up to $25,000. The dreams that once danced in their minds, of owning homes in a community designed with their cultural needs in mind, have turned into a harsh reality.
This development was marketed as a pioneering Somali-focused housing project in Minnesota, promising idyllic lakefront homes alongside vital community resources such as halal markets, a mosque, and an Islamic school. The vision was to create a welcoming, faith-based community, even offering no-interest, 20-year mortgage plans. Promotional events organized by Nolosha in 2022 featured enticing renderings of what seemed to be a utopian suburban enclave, garnering excitement and hope.
However, the facade crumbled when affidavits and investigative reports unraveled a web of deceit. Nolosha never owned the ambitious 37-acre parcel of land in Lakeville, nor did they ever manage to secure the necessary permits to break ground. A purchase agreement for the land fell apart in December 2024, as deadlines were repeatedly missed. Compounding this misfortune, the property is now subject to federal forfeiture due to its ties to the staggering $250 million Feeding Our Future fraud case.
“As a Muslim, it is not OK to buy something that is stolen,” wrote Abdulkarim Mohamud, a concerned family member, in a sworn affidavit presented to the Minnesota Attorney General’s Office. “So the fact that the land was involved with Feeding Our Future money was worse than buying land with interest.” Such a sentiment illustrates the profound ethical dilemmas that can arise when community ties are exploited for personal gain.
Lakeville’s Planning Manager, Kris Jenson, confirmed in a court affidavit that no formal development applications had ever been filed by Nolosha. Moreover, she pointed out the considerable challenges the site posed, including significant wetlands that complicated potential use.
Anecdotes from families reveal a distressing pattern of misleading information regarding the project’s progress and terms. Both Abdulkarim Mohamud and his cousin, Siraji Noor, reported being assured that their deposits would be matched and promised completion of five-bedroom homes by November 2023. Yet, they faced months of delays and unreturned calls, leading them to join forces with others in legal action.
“What was supposed to be an amazing gift for our son has turned into a nightmare,” expressed Abdulkarim Mohamud in his affidavit. It is a heartbreaking reminder of the personal stories behind these legal battles.
The lawsuit was initiated by the Attorney General’s Office in October 2024 after a surge of complaints highlighted the misrepresentation of essential project facts. “If you are selling a product, you need to be honest with your customers about what that product is,” Ellison emphasized in a statement following the lawsuit. “Promising your customers the world, taking massive upfront payments, and then failing to deliver is fraud, plain and simple.”
During a court hearing in April 2025, Abdullahi acknowledged that Nolosha could no longer cover legal fees. He attributed the collapse of the company to the negative publicity surrounding the attorney general’s investigation, claiming it had frightened clients away. Abdullahi proposed forming a “special purpose vehicle” with community members to secure funding for legal support. Yet, by the time of the final hearing, Nolosha remained unrepresented and noncompliant.
“Obviously, I’m not going to grant a continuance,” remarked Judge Sande, expressing his exasperation. “This has just gotten preposterous, frankly.” In a previous hearing, he had directly warned Abdullahi, “It’s time for you to take this matter seriously. Mr. Abdullahi, this just isn’t going to work.”
What was envisioned as a beacon of hope for Somali-led, faith-compliant homeownership instead devolved into a cautionary tale. Families were drawn in by promises of halal financing, free from interest payments, yet the project never went beyond enticing presentations. Court records indicate that while some buyers received partial refunds, Nolosha often deducted hefty penalties, despite not delivering any homes. The FBI is also investigating the company, further complicating matters.
The Attorney General’s Office has vowed to pursue full restitution for the affected families, reiterating the need for accountability. As this situation unfolds, one must ponder: What safeguards are in place to protect vulnerable communities from predatory practices? And how can we ensure that promises made are promises kept?
As we reflect on this troubling case, the emotional upheaval faced by these families serves as a potent reminder of the importance of integrity in business practices—one that resonates well beyond Minnesota’s borders.
Edited By Ali Musa
Axadle Times International – Monitoring
