An investor suing troubled developer Johnston Daniel Pettit has now also set their sights on the CEO in the real estate sector.

In one of the most high-profile cases in Polk County, a renowned gastroenterologist from Des Moines has filed a lawsuit against Orton Homes president Rob Orton and detained developer Daniel Pettit from Johnston. In the lawsuit, the doctor...Bernard Feldmanwho serves patients at Mercy Hospital in Des Moines claims that they did not refund him the amount of850,000 US dollarsThe lawsuit was filed on April 22 in the Polk County court. Despite the fact that Pettit, aged...43 years oldHe is already suspected of numerous crimes related to fraud; this case is the first in which Orton appears, who is the CEO of American Group LLC — a holding company that encompasses about twenty real estate properties, including RE/MAX Precision in Clive.

Neither Feldman nor Orton responded to inquiries regarding the comments. During the Observer's investigation in December, it was found that Pettit and his associated companies have debts and court rulings amounting to nearly70 million dollarsLawsuits show that his failed deals have negatively impacted not only the yet-to-be-built projects in West Des Moines but have also affected numerous business partners, creditors, and companies outside of Iowa.

In the lawsuit that Feldman filed last year, he claimed that he invested his funds in various projects of Pettit. However, Pettit, according to the plaintiff, acted independently according to his agreements, without notifying Feldman about it. Furthermore, Feldman points out that Pettit did not pay the company's bills and misused his funds instead of investing them in the real estate for which they were intended.

Among the projects that Feldman invested in was a planned residential complex in West Des Moines near the new university campus, which was never realized.

According to the court's decision, Pettit must pay Feldman almost9.3 million dollarsbased on the results of the previous lawsuit, which alleged fraud, deception, and misrepresentation.

In the new lawsuit, Feldman claims that Pettit and Orton failed to fulfill their obligations regarding the loan repayment of850,000 dollarsissued in2021including about32,000 dollarsin the form of accumulated interest. The lawsuit points to a breach of contract by Pettit and Orton, as well as their company Mozart Properties.

Pettit, who was arrestedJanuary 12After failing to appear to serve a six-month prison sentence for three other civil cases, he remains incarcerated in Polk County Jail. Last week, the Dallas County registrar...RiNe ArnoldIt has been confirmed that Pettit has become the subject of new accusations that have caught the authorities' attention. He is accused of attempting to fraudulently transfer a plot of land for development in West Des Moines to one of his investors, which is currently undergoing a property conversion process and other legal disputes.

Investors have requested an investigation into the individuals who signed the notarized agreement for the transfer of rights to10 acres of landnext to the university in Des Moines. As part of this deal, it was planned to transfer ownership in Dallas County, located directly west of the Polk County line, to a limited liability company that is managedMichael Metcalf, an investor from Georgia. The account for the transfer of rights includes Pettit's signature and the notary's seal.Mike Reiser, a realtor from Ankeny.

Column "Reader Support Service"Lee Ruda helps the residents of Iowa get answers and justice from government officials, the justice system, the business sector, and non-governmental organizations.

You can contact her at the address[email protected]by phone515-284-8549, on Twitter@leeroodor on Facebook atFacebook.com/readerswatchdog.