An Iola man has been banned from doing business in Kansas and ordered to pay more than $58,000 in restitution and penalties for failing to provide goods after being paid, and making unfair transactions.
Don Diebolt, who does business as Diebolt LLC, was permanently banned from doing business in Kansas, Attorney General Derek Schmidt announced Thursday.
According to court records, Diebolt’s company was contracted on at least two projects in 2017 that were never completed.
The company was contracted for the construction of a building, and was paid $40,000. Diebolt’s company abandoned the project, the court records read. The plaintiff said he was due a refund of $2,899.27.
Another consumer paid $15,484.84 for supplies and construction of a pole barn, but never received any services or material, according to court records.
After more than 20 attempts by the consumers to resolve the matter, complaints were filed with the 31st Judicial District alleging violations of the Consumer Protection Act.
Diebolt failed to respond to the complaints, and District Judge Daniel Creitz ordered a default judgment in the case.
Schmidt then banned Diebolt from doing business in the state.
Diebolt was ordered to pay $18,384.11 restitution to the two consumers, and fined $40,000 in civil penalties as well as costs of the attorney general’s investigation.
Diebolt also owns multiple rental properties in the area and is the former owner of Diebolt Lumber.
The lumber business closed and sold at auction in 2015. Diebolt said at the time he hoped to use proceeds from the sale to finance his new contracting business to manufacture custom homes and post frame buildings.
Multiple lawsuits have been filed against Diebolt in recent years, often for mortgage foreclosure on his properties.
The Limited Liability Company status for Diebolt LLC was forfeited on Oct. 15, 2021, for failing to renew, according to the court documents.
