Jury Finds Home Financing Scheme That Targeted Muslims in Minnesota Violated State Law

June 24, 2026 - 04:03

A jury has found that a real estate scheme marketed to East African Muslims in Minneapolis violated state law, ruling against a home seller who used deceptive financing deals falsely labeled as "sharia compliant." The civil verdict stems from a joint investigation by ProPublica and Sahan Journal, which uncovered a pattern of predatory practices aimed at the local Muslim community.

The case centered on a seller who offered homes with financing that promised to follow Islamic law, which prohibits charging interest. Instead, the deals allegedly included hidden fees and inflated prices that effectively functioned as interest, trapping buyers in unfair contracts. Many victims were recent immigrants seeking affordable housing and trusting that the arrangements respected their religious beliefs.

The jury found the seller liable for violating Minnesota's consumer protection laws, including fraud and deceptive trade practices. The ruling sends a clear message that targeting religious communities with predatory lending will not be tolerated. Legal experts say the decision could set a precedent for similar cases across the country, where "sharia compliant" financing has sometimes been used as a cover for exploitation.

The plaintiffs' attorneys argued that the scheme preyed on vulnerable families who had limited options due to language barriers and discrimination from traditional lenders. The verdict orders the seller to pay damages, though the exact amount has not been finalized. Community leaders praised the outcome, calling it a step toward accountability and justice for those who were misled.