AG Ellison files fraud lawsuit against planned housing development in Somalia

As part of a months-long fraud investigation, the Minnesota attorney general is now suing the developer of a proposed Lakeville housing project aimed at Somali-American families.

Attorney General Keith Ellison accuses Nolosha Development of “misrepresenting numerous important sales details” to collect $25,000 in deposits. He is now asking a judge to intervene and ensure full refunds for hundreds of families who have already paid.

As 5 INVESTEIGATES reported earlier this year, investigators say Nolosha has already collected more than $1 million from customers for homes that were supposed to be ready for occupancy last year. The land is currently undeveloped.

The lawsuit claims the following:

• Nolosha promised single-family homes, while only multi-family homes would be built.
• Home buyers were promised 20-year interest-free payment plans, when in reality they would have to take out a loan or buy with cash.
• Nolosha misled buyers by promising that homes would be completed by November 2023 and more would break ground in May 2024. In reality, the developer has not yet purchased the land for the development, obtained permits, hired construction workers, or broken ground.
• Promised amenities such as halal food markets, a mosque and an Islamic school would not exist as families move into their homes.

“When you sell a product, you must be honest with your customers about what the product is,” Ellison said in a statement. “Promising your customers the world, charging them massive upfront payments, and then failing to deliver on those promises is fraud, pure and simple.”

Nolosha declined to comment on the lawsuit but argued they were being unfairly targeted by the state.