Danny Carroll Scammed Old Lady Out of $50,000
In 1996 a recently elected state representative from Central Iowa sought out the land deal of the decade. What did he get? He made over $50,000 from scamming an elderly woman in Las Vegas, with the help of a local attorney (who would subsequently be disbarred), setting the stage for the biggest scandal in Central Iowa politics this side of CIETC.
Representative Danny Carroll of Grinnell is the Republican Speaker Pro Tem of the Iowa House. He was elected to the Iowa House in 1994 and was elected Speaker Pro Tem in 2003. Carroll is owner of the “Carroll Pumpkin Farm” and is a lobbyist with Iowa Telecom. An extreme social conservative, he has campaigned with GOP presidential hopefuls such as Senator Sam Brownback, Governor Haley Barbour, Senator John McCain, Governor Mitt Romney, and former House Majority Leader Newt Gingrich.
The mention of Gingrich is especially pertinent. With Democrats poised to take back the U.S. House and end the Gingrich-led Republican Revolution, the following tale of abuse of power and exploitation demonstrates that the GOP “culture of corruption” has clearly found its way into local Iowa politics, namely through Danny Carroll.
In 1999, Grinnell attorney Brian Bisbee was disbarred by the Iowa Supreme Court for “seriously violat(ing) his ethical responsibility as (a) lawyer.” Bisbee was representing Cora Creamer in the sale of her property to Representative Danny Carroll. Mrs. Creamer was an elderly widow who had fallen behind in her bills. She owed approximately $7,900 in back fees and taxes on her property and she wanted to sell her home. Typical practice is for a person to sell their home and subtract the liens and back taxes from the sale price at closing. What Bisbee didn’t disclose was that he was also participating in the transaction financially by working closely with Representative Carroll who was providing the financing for the deal. In the disbarment proceeding, an unnamed Grinnell realtor is mentioned. The Iowa Progress team has recently uncovered property records that decisively prove that Representative Carroll was the person behind the financing of the transaction as well as the holder of the deed & title.
Essentially, Bisbee & Carroll took a 50% interest in Mrs. Creamer’s Las Vegas home as payment for settling the liens and back taxes on the property.
They did not disclose to Mrs. Creamer that she only owed $7,900. The 50% interest in the home would amount to approximately $50,000. This placed Bisbee in the incredibly unethical position of both representing the interests of the seller and the buyer who was working behind the scenes to finish the deal - Danny Carroll. The liens and back taxes were all paid by Representative Carroll - as shown here. You can also search the public records on the Clark County Recorder’s site HERE.
Now, the rules relating to real estate professionals in Iowa operating out of state are shady, but for lawyers they are very clear. According to the Supreme Court opinion:
“Nothing in the record before us suggests that Bisbee disclosed to his client that the proposed financial arrangement was more advantageous for him than for her. Given this obvious conflict, it became Bisbee’s burden to establish that his transaction with Creamer was fair and equitable.”
Representative Danny Carroll participated in the scamming of a poor elderly woman for his, and Bisbee’s, own financial gain. This is what the Supreme Court said of Bisbee’s conduct:
“Bisbee’s financial entanglement with Creamer […] was costly to her. Moreover, his failure to cooperate in these proceedings has impeded the administration of justice and reflects poorly on his fitness to practice law. His disregard for his client’s interests, as well as those of the profession, demands a lengthy suspension.”
Bisbee was disbarred in 1999, but because he declined to name his partner in crime directly, Carroll largely got off the hook — though not completely: after Bisbee’s disbarment, Carroll “voluntarily” retired from Ramsey-Weeks, the Grinnell real estate firm where he had been employed. I called up Bisbee yesterday who now runs an evangelical shelter in Missouri, to see if he’d answer any questions about his relationship with Carroll. He politely declined. Remember folks, this was a sitting state representative who had also served as a County Supervisor for many years prior. He participated in a deal that “impeded the administration of justice” and bilked a poor older woman of around $50,000. This is the same Representative Danny Carroll who says he values seniors.
But talk is cheap. And unfortunately, it seems Danny Carroll doesn’t put his money where his mouth is.
16 comments November 3rd, 2006
