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.
