Iowa attorney general sues Davenport man for allegedly defrauding businesses nationwide

A Davenport man is being sued by the Iowa Attorney General's office over allegations that he defrauded businesses across the country, according to a news release Friday.  

The civil lawsuit filed this week alleges the defendants: Alphonso Barnum; his wife, LaFayia Kay Barnum; his mother, Willie Nance; and several limited liability corporations, including City Wide Promotions, Top Faith Solutions and New Start Media; violated the Iowa Consumer Fraud Act.

Barnums' businesses allegedly promised to "create and distribute promotional items" but instead defrauded small businesses across the country, the release from the attorney general's office said. 

The lawsuit alleges that the “defendants have exhibited a complete indifference to the investigative efforts of the Iowa Attorney General.”

The businesses sold advertising space on posters and calendars that promote high school sports teams and then expanded to direct mail advertisements, city information guides, magnets and brochures, the attorney general's office said.

The Barnums' companies often promised to make up to 5,000 of the promotional items and distribute them throughout the community, the lawsuit alleges. They also "falsely" claim they are working with local schools to distribute the items.

The advertisements, which range in cost from a few hundred dollars to more than $1,000, are sold to real estate and insurance agents and other small-business people.

Allegedly, the companies sometimes create mock-up ads or produce a few samples for customers, but often that is the only product that gets made or distributed, the attorney general's office alleges.

The Barnums' charge the customers’ credit card or bank account and ignore complaints from customers or delay responding until after the money is gone and the victims cannot get the money back.

When the defendants get too many complaints, they create new limited liability corporations and switch credit card processors and banks, the lawsuit claims.

One example from the 22-page petition alleges that in August 2016 Alphonso Barnum adopted a resolution creating the fictitious name “New Start Marketing LLC” for New Start Media LLC pursuant to a fictitious name resolution filed with the Iowa Secretary of State on Aug. 22 that year.

Again in September 2016 Barnum allegedly adopted a resolution creating the fictitious name of “Alumni Sports LLC” for New Start Media LLC pursuant to a fictitious name resolution filed with the Iowa Secretary of State on that date.

Alumni Sports LLC and New Start Marketing LLC engaged nationwide in the sale of advertising space on promotional items and was allegedly used to perpetrate nationwide frauds.

Defendants were unable to be reached for commentary. 

The lawsuit says the defendants also use "confusion and high-pressure sales tactics" to convince consumers that they previously agreed to purchase advertising and that the amounts are past due. They "threaten" to turn consumers over to a collection agency if they refuse to pay the fictitious debt immediately.

The Iowa Attorney General’s investigation and news reports indicate that consumers have complained about those practices across the country, including in New York, Idaho, Michigan, Texas, Massachusetts, California, Florida, Georgia and Missouri, as well as Iowa. New Start Media has an “F” rating from the Better Business Bureau.

The state seeks penalties against the defendants for up to $40,000 for each violation, in addition to reimbursing victims for all money obtained.

The Attorney General’s Office also asks a judge to permanently dissolve each of Barnum’s limited liability companies and prohibit the Barnums from operating any business in Iowa involving advertising or selling of promotional items.