Massachusetts Court Orders Alleged Phantom Debt Collectors to Halt Operations

Case Snapshot

• Court: Suffolk County Superior Court (Massachusetts)
• Case: Commonwealth of Massachusetts v. East Coast Financial, Assessment Resolution, LLC, et al.
• Decision Date: June 16, 2026
• Core Issue: Alleged phantom debt collection scheme targeting Massachusetts consumers
• Key Allegation: Defendants used false identities, threats, and deceptive practices to collect alleged debts without proper licensing
• Court Holding: Court granted a preliminary injunction pending further litigation
• Outcome: Defendants ordered to cease collection activities, preserve evidence, and refrain from dissipating assets
• Notable Detail: The Attorney General alleges consumers paid more than $26,000 through the alleged scheme

The Massachusetts Attorney General’s Office has secured a preliminary injunction against Franklin-based companies East Coast Financial and Assessment Resolution, LLC, along with owners Paul and Richard Santorsola, temporarily halting their debt collection activities while litigation proceeds. The court order follows allegations that the defendants operated a “phantom debt collection” scheme that used threats, false representations, and harassment to collect money from consumers.

According to Attorney General Andrea Joy Campbell, the order is intended to prevent further consumer harm while the state pursues claims under Massachusetts consumer protection and debt collection laws.

Attorney General Alleges Deceptive Collection Practices

The lawsuit, filed in June 2026, alleges that East Coast Financial operated as an unlicensed debt collector that contacted Massachusetts consumers regarding old court judgments and attempted to collect payments through intimidation and misrepresentation.

According to the complaint, individuals associated with the operation allegedly:

• Used false names and identities.
• Claimed affiliations with law offices or constables.
• Threatened consumers with arrest, wage garnishment, property seizure, and liens.
• Failed to provide documentation demonstrating ownership of the debts despite consumer requests.

The Attorney General’s Office alleges that consumers paid more than $26,000 as a result of the scheme.

State officials contend that neither East Coast Financial nor the individual defendants held the licenses required to engage in debt collection activities in Massachusetts.

Court Grants Preliminary Injunction

The Suffolk County Superior Court issued a preliminary injunction on June 16 that applies to East Coast Financial, Assessment Resolution, Paul Santorsola, Richard Santorsola, and other individuals identified in the complaint.

Under the order, the defendants are prohibited from:

• Collecting or attempting to collect debts or judgments.
• Initiating or pursuing litigation against consumers related to debt collection.
• Contacting consumers regarding alleged debts.
• Destroying, altering, or tampering with documents or electronic records.
• Transferring, concealing, or dissipating assets while the injunction remains in effect.

The court also ordered that assets remain preserved during the litigation, subject to limited exceptions for ordinary business operations and necessary living expenses.

Licensing and Compliance Remain Central Issues

Massachusetts law generally requires debt collectors to obtain appropriate licenses and comply with state debt collection regulations. The Attorney General alleges that the defendants lacked the legal authority to engage in debt collection activities and misrepresented their ability to pursue enforcement actions against consumers.

The state is seeking broader injunctive relief and restitution for affected consumers as the case moves forward.