Court Bans Flipper From Real Estate Business In Iowa

In Des Moines, Iowa, The Associated Press reports:

• A Des Moines real estate investor accused of consumer fraud has been banned from doing business in Iowa. A Polk County District Court judge on Monday ordered John Davis to stop selling, renting, leasing or investing in real estate in Iowa. The order resolves a consumer fraud lawsuit filed by the Iowa attorney general's office against Davis and his companies in 2006. Davis, who agreed to the terms of the order, also was ordered to pay $30,000 to reimburse consumers.

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• Iowa Attorney General Tom Miller says the lawsuit alleged that Davis sold homes at highly inflated prices to customers with average or below average credit scores. He says Davis also used phantom down payments to help customers get mortgages. Miller says all the loans cited in the lawsuit ended in foreclosure.

Source: Court bans real estate investor from doing business in Iowa.

From the Iowa Attorney General's Office:

• Consent Judgment,
• Original lawsuit (filed 10-5-06),
• Press release.