AG Ellison files fraud lawsuit against proposed Somali housing development

Amid a monthslong fraud investigation, Minnesota’s attorney general is now suing the developer of a proposed residential project in Lakeville geared toward Somali American families.

Attorney General Keith Ellison alleges Nolosha Development “misrepresented numerous important sale details” to collect $25,000 down payments. He is now asking a judge to step in and secure full refunds for hundreds of families who have already paid.

As 5 INVESTIGATES reported earlier this year, investigators say Nolosha has already collected more than $1 million from customers for homes that were supposed to be move-in ready last year. So far, the land remains undeveloped.

The lawsuit claims:

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

“If you are selling a product, you need to be honest with your customers about what that product is,” Ellison said in a statement. “Promising your customers the world, taking massive upfront payments from them, then failing to deliver on those promises is fraud, plain and simple.”

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