Attorney General Ellison wins judgment against home developer for defrauding Somali immigrant families
Judgment entered against Nolosha Development in favor of families that paid their entire life savings for homes that were never built; court orders Nolosha to repay customers, amount to be determined later
July 29, 2025 (SAINT PAUL) — Minnesota Attorney General Keith Ellison has obtained a successful judgment against Nolosha Development and owner, Abdiwali Abdullahi, resolving his October 2024 lawsuit charging both defendants with taking large down payments for homes that were never built. Late yesterday, Dakota County District Court found in favor of the Attorney General’s Office on all of the claims the Attorney General brought charging the defendants with consumer fraud. The Court ordered Nolosha to repay their customers, pay civil penalties for violating the law, and pay the State’s attorney’s fees. An evidentiary hearing was ordered by the Court to determine the amount of civil penalties, compensatory damages, and restitution Nolosha will be expected to pay, as well as the scope of injunctive relief to be ordered against Nolosha. A hearing date has not yet been set.
“Nolosha Development and Abdiwali Abdullahi cheated families out of their life savings by making extravagant promises they had no ability to deliver on,” said Attorney General Keith Ellison. “That’s fraud, plain and simple, and my team and I held them accountable for it. Let the judgment we won against Nolosha serve as a warning that I will not allow fraudsters to take advantage of the people of Minnesota. I encourage any Minnesotans who believe they have been cheated or defrauded to file a complaint with my office.”
Nolosha was brought to the attention of the Minnesota Attorney General’s Office in 2023 through numerous complaints from the public that Nolosha was engaging in business fraud and that the development of a parcel of land in Lakeville was being falsely advertised. Nolosha’s fraudulent representations include the following claims:
- That Nolosha owned the undeveloped parcel of land in Lakeville when they did not;
- That Nolosha would build customers large single-family homes when only multi-family buildings would have been feasible;
- That Nolosha would sell the homes with no-interest 20-year payment plans with affordable monthly payments when the company had no ability to offer such financing incentives;
- That Nolosha would finish building some of the homes by November 2023 and additional homes by May 2024 when in fact the company had not yet purchased any land to develop; and
- That many of Nolosha’s customers were induced to pay large down payments based on false promises that they would live in a community walking distance to numerous amenities desirable, but hard to find, by some in the Somali-American community like Halal food markets, a mosque, and an Islamic school.
The default judgment against defendants was entered after the Court determined that "defendants have no intention of following Court rules or orders..." despite being given “abundant opportunities to participate in this lawsuit...” The default judgment was the result of defendants ignoring their legal obligations and interfering with the Attorney General’s investigation for years.
The Attorney General’s Office argued, and the Court agreed, that the defendants never intended to respond to discovery or to produce information sought by the Attorney General’s Office pursuant to their investigation. The Court found that “defendants’ recalcitrance and outright defiance have stymied the State’s efforts” to determine the scope of the harm done to families looking to purchase homes in a Somali-American community developed by Nolosha. The Order contemplates the appointment of a receiver to manage Nolosha’s remaining assets until a monetary judgment can be determined to compensate customers.
Members of the public who would like to report fraudulent activity are encouraged to file a complaint with the Attorney General’s Office using this online form. The Office can also be reached by calling (651) 296-3353 (Metro area) or (800) 657-3787 (Greater Minnesota).
