30-07-2025
Court orders Lakeville developer that falsely promised homes for Somali families to repay customers
Minnesota Attorney General Keith Ellison announced Tuesday his office secured a judgment against a property development company accused of defrauding Somali immigrant families.
On Monday, the Dakota County District Court ordered Nolosha Development LLC and owner Abdiwali Abdullahi to repay their customers, pay civil penalties for violating the law and pay the state's attorney's fees, ruling in favor of the attorney general's office on all claims brought against Nolosha.
The court ordered an evidentiary hearing to determine the amount the developer will be expected to pay. That hearing has yet to be scheduled.
The court entered a default judgment as a "result of defendants ignoring their legal obligations and interfering with the Attorney General's investigation for years," according to a press release from the Minnesota Attorney General's Office.
Last October, Ellison filed a lawsuit against Nolosha, claiming it had been soliciting and collecting money using "deceptive and fraudulent representations," promising hopeful buyers large single-family homes with 0% financing in a community "rich with features many Muslim families seek." The company, however, did not own the land in Lakeville, Minnesota, where it claimed the community would be located.
Customers were told that for a $25,000 deposit, the company would design and complete a home per the customer's specifications. Nolosha also advertised they would sell the homes with 20-year no-interest payment plans. The court said Monday that the developer "had no ability to offer such financing incentives."
Nolosha told prospective buyers the first phase of construction would be completed by November 2023 and the second phase would be completed by May 2024, but the property was never developed, according to the lawsuit.
The City of Lakeville first heard about the development in April 2023 when citizens asked about the project, according to the lawsuit. Nolosha's marketing materials "appeared so outlandishly false" that officials reported it to the police.
The company advertised it had 160 plots to sell and once those slots were filled, it began charging customers $500 to be added to a waitlist. The lawsuit alleges there are over 1,500 customers on the waitlist.
In all, the company received more than $1 million from more than 160 families, according to the Attorney General's Office.
