Monday April 14, 2025
Nolosha Develop wants to build a Somali-focused community on this 37-acre plot, pictured on April 1, 2024, in Lakeville. Credit: Dymanh Chhoun | Sahan Journal
MINNEAPOLIS, Minn (HOL) — Minnesota Attorney General Keith Ellison is asking a judge to order Nolosha Development to refund hundreds of thousands of dollars in deposits paid by Somali-American families for homes that were never built, citing consumer fraud and deceptive practices.
In a motion filed this month, the Attorney General's Office accused Nolosha of collecting at least $1 million from more than 160 prospective homebuyers without ever owning the land in Lakeville, applying for permits, or securing financing. The state is also seeking a default judgment against the company and its CEO, Abdiwali Abdullahi, citing repeated violations of court orders and a failure to maintain legal representation.
"For over a year, defendants have refused to provide basic information," Assistant Attorneys General Mark Iris and Katherine Kelly wrote in the court filing. "This has greatly prejudiced our case and delayed justice for victims."
Among those victims is Abdulkarim Mohamud, a Metro Transit dispatcher who, along with his cousin Siraji Noor, paid $25,000 each in deposits after attending promotional events hosted by Nolosha in 2022. The events at venues like Hamline University pitched a utopian, Somali-focused housing development featuring lakeview homes, a mosque, a school, and halal restaurants—complete with interest-free Islamic financing.
"It sounded like an amazing opportunity to grow the Somali community and the culture," said Abdulkarim in a sworn affidavit. He hoped the house would be a wedding gift for his son, Muhammed Mohamud, 27, who later spearheaded the family's efforts to recoup their funds.
Nolosha told buyers they would pay a set monthly rate for 20 years but couldn't sell their homes during that period. If they backed out, the house would revert to Nolosha. The company presented the $25,000 payments as pre-reservation fees but stated in fine print that these did not guarantee housing. However, Abdulkarim and Siraji allege they were told otherwise, and that Nolosha would even match the deposit amounts due to savings on realtor fees.
The development, however, began to unravel soon after deposits were collected. Nolosha increased home prices, eliminated single-family houses, and ultimately failed to secure the 37-acre parcel it claimed to be developing. A purchase agreement for the land was cancelled in December 2024 after repeated delays. The Attorney General's Office later revealed that the land was linked to the $250 million Feeding Our Future federal fraud case and that the U.S. government placed a notice of lis pendens on the parcel in 2022. The property is expected to be seized after the sentencing of the two convicted defendants who purchased it.
"Buying stolen land is worse than paying interest," Abdulkarim said. "What was supposed to be an amazing gift turned into a nightmare."
City officials also raised concerns about the project. In an affidavit, Lakeville Planning Manager Kris Jenson said Nolosha did not submit any formal permit applications. She added that "both the topography and the significant wetlands on site present challenges for the use of the site," raising further doubts about the project's viability.
While families were led to believe construction would begin in fall 2022 and homes would be ready by November 2023, nothing materialized. Muhammed Mohamud said Nolosha blamed bureaucratic delays in Lakeville, but city records show the company did not meet with municipal officials until late 2023.
As delays mounted, Muhammed posted a TikTok video demanding accountability. The next day, Abdiwali contacted the family and promised a refund via cashier's check—but provided a fake tracking number instead. The check never arrived. Eventually, Abdiwali gave Abdulkarim and Siraji two $25,000 checks. Both bounced.
The Attorney General's Office said Nolosha refused to hand over essential documents, including a customer list and financial records, depriving the state of the ability to depose key witnesses. The company has been without legal counsel for most of the year. Its previous attorneys withdrew before court-imposed deadlines.
The AG's Office also noted that Nolosha is under investigation by the FBI, expanding the legal scrutiny beyond the state's civil case.
Court filings show Nolosha gave partial refunds to two other clients but deducted thousands as penalties. "This all caused a lot of financial and emotional stress for my family," one client wrote in a sworn affidavit.
Abdiwali and his wife, Sumayya Farah, promoted the project as a solution to the social determinants of health and a path to generational wealth for Somali families. They cited their credentials in public health and emphasized the appeal of halal loans, which avoid interest payments forbidden in Islam. The company's events drew hundreds and featured local officials, including Minneapolis City Councilmember Jamal Osman, who praised the initiative in a promotional video.
But Nolosha never delivered. "This guy is a thief," said Siraji. "I don't know what he's doing with the money."
A court hearing on the state's motion for default judgment and sanctions is scheduled for April 29 before Hennepin County District Judge Christian Sande.