Court Orders Embattled Developer To Repay Somali Families For Lakeville Homes He Never Built
Latest ruling marks turning point in Minnesota’s response to the Nolosha Development scandal
LAKEVILLE, MN — July 29, 2025 — A Minnesota district court has ordered the embattled founder of Nolosha Development LLC to repay multiple Somali American families for homes that were never built in Lakeville, closing a painful chapter in one of the most high-profile real estate fraud cases to hit the Twin Cities’ East African community in recent years.
Judge Karen Williamson of Dakota County District Court issued the ruling on Monday, finding that the developer, Abdirahman “Abdi” Warsame, violated civil fraud statutes by collecting large down payments from at least 14 families between 2020 and 2022 for properties that were never constructed.
The decision comes after months of mounting pressure from community leaders, state lawmakers, and housing advocates, who described the case as a tragic example of financial exploitation within an underserved immigrant community that has long struggled for fair access to homeownership.
“Families trusted this developer because he spoke their language and shared their faith,” said Fartun Ahmed, a community advocate who has been organizing support for victims. “What happened instead was devastating — they were promised the American Dream and left with nothing.”
A Pattern of Broken Promises
According to court documents, Warsame promoted Nolosha Development as a culturally responsive homebuilding business designed to serve Muslim families by offering features such as halal kitchen designs and private prayer spaces. He focused his marketing on Somali American families in the south metro and at mosques in the Twin Cities.
Between 2020 and 2022, Warsame collected down payments ranging from $20,000 to $40,000 from clients for homes to be built on lots in Lakeville, Apple Valley, and Farmington. However, investigations revealed that many of the lots were never secured, and in some cases, permits had never been filed. Several families ended up in financial ruin, forced to take out personal loans or deplete their savings based on empty promises.
The Minnesota Attorney General’s Office launched an investigation in late 2022 following complaints from multiple families. In 2023, the state filed a civil lawsuit against Nolosha Development and Warsame, citing consumer fraud, deceptive practices, and breach of contract.
“This case represents one of the most egregious abuses of trust we’ve seen in the housing sector,” said Attorney General Keith Ellison in a statement. “We pursued this because no Minnesotan — no matter their background — should be misled or financially exploited in their pursuit of homeownership.”
Legal and Financial Consequences
Judge Williamson’s ruling orders Warsame to pay over $700,000 in restitution to affected families, along with additional civil penalties and legal fees. The court also permanently bars Warsame from engaging in any real estate or construction business in the state of Minnesota.
While the judgment is a significant legal victory, it remains unclear whether the families will be able to fully recover their losses. Warsame’s assets are currently under review, and some may be tied up in separate bankruptcy proceedings. Legal advocates are urging the state legislature to explore a potential restitution fund or other aid for victims.
A Wake-Up Call for Oversight
The Nolosha Development scandal has prompted state officials to review how residential construction and developer marketing practices are regulated — especially in communities with limited English proficiency and limited access to legal counsel.
“We must ensure safeguards are in place to prevent these kinds of abuses,” said Rep. Hodan Hassan (DFL–Minneapolis), who has pushed for housing reform legislation aimed at protecting immigrant and refugee communities. “The Somali community deserves the same protections and opportunities as anyone else.”
In the wake of the ruling, community organizations such as the Minnesota Somali Community Resettlement Center and CAIR-MN are launching financial literacy workshops and legal clinics aimed at empowering families and preventing future fraud.
For many families impacted, the judgment brings both relief and a painful reminder of what was lost.
“We still don’t have a home,” said Halima Noor, a mother of four who paid $35,000 for a promised Lakeville property in 2021. “But at least now, the truth is in the open — and we know we were not alone.”
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