Man Sues North Las Vegas over Eminent Domain House-Flipping Plan

Will snatch up houses with underwater mortgages and try to resell them

The City of North Las Vegas is endangering its financial status with a cockeyed plan to seize up to 5,000 homes through eminent domain, buy them with public money and flip them, a man claims in court.

Gregory D. Smith sued North Las Vegas, its City Council and City Attorney Jeffrey Barr, in Federal Court. They are the only defendants.

"The City of North Las Vegas has entered into and embarked upon a plan to use the power of eminent domain to condemn and seize privately-owned residential mortgage loans in the City," the complaint states.