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Background of man behind proposed Lino Lakes development raises questions

Faraaz Mohammed, who has been telling people his name is Faraaz Yussuf, was convicted of criminal theft by swindle in 2011, and this week he settled a fraud lawsuit.

LINO LAKES, Minn — The man behind the proposed Lino Lakes housing development and mosque calls himself Faraaz Yussuf. 

But court records show his name actually is Faraaz Mohammed, and he has a past that includes a fraud conviction in criminal court and fraud allegations in civil court. And now, KARE 11 News confirmed that Mohammad has been accepting $10,000 down payments from people who want to reserve a home in the now-paused housing development.

Several times, Mohammed told the public, as well as KARE 11 News, that he is a "long-time builder."

"As a builder, I can proudly say that I have fewer lawsuits than most," Mohammed said in the April 8 Lino Lakes City Council meeting.

"I, myself, have been a residential builder and developer for the last eight or nine years," he told KARE 11 on April 29.

But KARE 11 News confirmed Mohammed is not and has never been, a licensed contractor in the state of Minnesota. According to the Department of Labor and Industry, Mohammed held a qualifying builder registration from 2019 through 2021 but never submitted the application to become a residential building contractor. A department spokesperson added that Mohammed does not have a license through any other name or company.

Mohammed's legal troubles began in 2011. He was charged with theft by swindle after forging his boss' signature onto checks he wrote to himself or to cash, in addition to using the company's electronic payment system to pay his own bills, according to the criminal complaint. 

Court records show Mohammed pleaded guilty to the charge and agreed to pay back more than $20,000. The victim, John Jacobson, told KARE 11 News he was only partially paid back.

Just this week, Mohammed settled a lawsuit accusing him of fraud. In that case, the plaintiff accused Mohammed of falsely claiming his company was a licensed contractor, as well as failing to perform more than $50,000 of work he was paid for. Mohammed agreed to pay back the plaintiff in installments with no response to the allegations.

That lawsuit also addressed Mohammed's new name, claiming he "uses aliases including 'Faraaz Yussuf' to confuse, mislead, or otherwise defraud persons with whom he does business." 

"Faraaz Yussuf" is the name he's been using regarding his latest company, Zikar Holdings, which state records show, was created in December 2023 — less than four months before presenting the idea of the Muslim-centric Madinah Lakes development project to the Lino Lakes City Council. 

Councilmembers this week voted to pause the proposal for one year to research infrastructure concerns, stemming from the growth that would come with the project.

Mohamed and the Minnesota Council on American-Islamic Relations accused the city council of stalling the project out of Islamophobia.

Mohammed's company, Zikar Holdings, boasts "a proven track record spanning over 10 years," creating "thriving communities." 

Mohammed's father told us his son has built projects in the past and maintains that his son is a licensed contractor, despite KARE 11 News' revelations.

Concerned Lino Lakes residents have questions about fliers they've received from Mohammed's Zikra Holdings office that ask for a $10,000 down payment to reserve a home in the now-paused Madinah Lakes project. 

The fine print said down payments are "non-refundable after 30 days."

Ibrahim Ghaleb of Anoka told KARE 11 he paid the $10,000 and believes many others have as well, but he doesn't want a refund.

"I want this project to go through," Ghaleb said. "I don't understand why they won't approve it."

Mohammed did not respond to multiple calls, emails or text messages, but late Friday afternoon, a family friend called KARE 11 News and said Mohammed was hospitalized after a recent heart attack.

Friday afternoon, KARE 11 News reached Jaylani Hussein, executive director of CAIR-MN, and asked if his organization was aware of the details about Mohammed's past when the organization planned the protest of the Lino Lakes City Council.

"I haven't heard a lot of those things, but for me, he's still moot because he's not the actual builder of any of those properties. For us, it's more about the process that was jeopardized here by Lino Lakes. If we see discrimination, we will call it out," Hussein said.

KARE 11 News reached out to the Lino Lakes mayor and city council members for a response to KARE 11's findings.

"When several of our taxpayers brought in many various court filings of criminal convictions, past lawsuits, pending lawsuits to city council meetings to be on the record, I must say, I was shocked. I found myself starting to question the validity of (Mohammed's) unfounded discrimination complaints even more. My proposal for the moratorium had nothing to do with one development or the other. It was a much broader lens focused on planning," Council Member Mike Ruhland said.

"Know that I have no ill will towards anyone. However, as I stated at our last City Council meeting, CHARACTER, or lack of it is what matters. I appreciate those who have high standards, high morals, high ethics. Those who express the virtues of honesty and compassion. Those who put others first," Council Member Christopher Lyden wrote.

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