Devices that measure body fat percentage with electrical impedence are notoriously inaccurate because too many uncontrollable variables affect it. If you did different measurements at different times on the same day, your results would not be the same twice. The most accurate method of determining body fat percentage is water displacement (expensive and not many places offer this), next would be calipers in the hands of a well-trained, experienced individual along with measurements (wrist size, waist to hip ratio, etc..).
A full-length mirror would probably be a better guage than that device! Do you really look that much flabbier than you did 30 pounds ago? No? Then I doubt that it's correct.
You should also expect to lose some lean body mass. According to the device, you started out with more lean body mass than your current goal weight. Since it's not realistic to expect 0% body fat, at your goal weight and say 14% body fat, you would have 163.4 pounds of lean body mass and 26.6 pounds of body fat.