In season one, the series followed the activities surrounding the Charleston, South Carolina-based Trademark Properties, founded by Richard C. Davis.

The A&E network responded through its spokesman, Michael Feeney, by saying, "We are deeply disappointed in the jury's decision, and we will follow the appropriate steps to have the verdict reversed.

In May 2007, television station WAGA in Atlanta exposed the Season Two episodes starring local developer Sam Leccima to be staged and fraudulent.

[5] This same report also revealed that Leccima has been the subject of numerous legal actions stemming from fraudulent real estate solicitations, some of which were related to his activity on the show.

In 2007, Flip This House was the subject of a breach of contract and fraud lawsuit brought by Trademark Properties, a South Carolina real estate company that starred in the show's first season.

In the lawsuit Davis claimed to have not received any financial compensation from A&E or Departure for Flip This House's first season and alleged that they had actually created the show themselves, but they called it Worst To First.

A&E also alleged that it only moved forward with a second season after Davis announced that he was launching a new reality show with the TLC cable television network.

The case was resolved by a jury and Davis was awarded $4 million, an amount equal to half of the profits from the first season of Flip This House.

A&E announced that it was pulling Leccima's Flip This House episodes off its broadcast schedule and denied any knowledge or part in the frauds shown on their metwork.

A&E Television Networks is not a party to any of the transactions shown in Flip This House and has not received any formal complaints about the properties or sales.