AG seeks $4.5 million in restitution from Lakeville housing developer accused of fraud

The Minnesota Attorney General’s Office is asking a judge to order a local developer to pay $4.5 million in restitution for a housing development in Lakeville that was never built.

Nolosha Development and its CEO Abdiwali Abdullahi previously promised 160 houses on about 40 acres of land, specifically tailored to the needs of the Somali-American community in the Twin Cities.

Court records later revealed Nolosha never owned the land which was previously purchased by a defendant in the Feeding Our Future fraud investigation.

In July, Hennepin County Judge Christian Sande found Abdullahi and Nolosha violated consumer fraud protection laws when they collected $25,000 “pre-reservation fees” from clients who wanted to reserve a unit in the development.

Some of those clients, including Muhammed Mohamud, testified in court at an evidentiary hearing on Tuesday.

“If it was just my family, we would have just took the loss, but when I found out it’s more than 100 families, I couldn’t stand for that,” Mohamud said. “They have nothing to show for it and all their money gone.”

Notably absent in court was Abdullahi who vigorously denied allegations of fraud last year.

In court, Judge Sande described him as “someone who clearly has committed fraud and has now disappeared.”

Abdullahi did not immediately respond to a request for comment from 5 INVESTIGATES. He has not been charged criminally and the Hennepin County Attorney’s Office could not confirm whether any additional action is pending.

While the court decides how much Abdullahi should be ordered to pay, families such as Mohamud’s say they are not counting on being made whole.

“We’re not expecting the money and that’s ok,” Mohamud said. “We believe in Allah. And if you’re not accountable in this life, you’ll be accountable in the next life.”

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