A housing development company established by “passionate Somali-American public health professionals” has been found liable for violating Minnesota’s anti-fraud laws. In turn, the developer will be forced to repay customers who were defrauded.
Nolosha Development, LLC was formed by Abdiwali Abdullahi in August of 2022. According to its since-deactivated website, the company sought to “address the housing disparity affecting East African households in the Twin Cities.” Nolosha was allegedly working to construct a housing development in Lakeville called “Nolosha Lakeville.”
The company promoted its planned Lakeville development as a place that “will be a valuable asset to the East African community in Minnesota.”
In October of 2024, the Minnesota Attorney General’s Office (AGO) filed a lawsuit against Nolosha and Abdullahi which accused the company of accepting large sums of money from customers after dramatically misrepresenting the development.
According to the AGO, Nolosha told customers the planned development would have single-family homes, offer no-interest payment plans, and have homes completed by November 2023 and May 2024. In turn, the company allegedly sold “Pre-Reservations” for homes in the uncompleted development. A “Pre-Reservation” reportedly cost $25,000.
However, the AGO said “the company has not bought the land, obtained necessary permits, nor hired a construction company to even break ground.” In its lawsuit, the AGO wrote that “the homes are years away from being built, no single-family homes will be available, and [Nolosha] will not sell the homes on no-interest payment plans.”
Specifically, Nolosha was accused of violating the Prevention of Consumer Fraud Act, the Uniform Deceptive Trade Practices Act, and the False Statement in Advertisement Act.
This week, a judge entered a default judgement against Nolosha and Abdullahi. As a result, the company will be required to pay damages to customers who were defrauded. The AGO has asked that the company be required to pay up to $4.5 million in restitution. A hearing is scheduled to discuss exactly how much should be paid.
According to court documents, the default judgement against Abdullahi and Nolosha was entered because they refused to comply with the discovery process. When the judgement was entered on Monday, Nolosha had no legal representation and Abdullahi represented himself in court.
In addition to paying restitution, Nolosha and Abdullahi are required to pay the state’s attorney’s fees. Alpha News attempted to contact Abdullahi and his company via phone, email, and text message. No responses were ever received.
“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,” added the attorney general.
Luke Sprinkel
Luke Sprinkel previously worked as a Legislative Assistant at the Minnesota House of Representatives. He grew up as a Missionary Kid (MK) living in England, Thailand, Tanzania, and the Middle East. Luke graduated from Regent University in 2018.
