A lawyer in upstate New York sold a collection agency the use of his and his firm's name, which the agency used to threaten bogus legal action against consumers across the country, state Attorney General Andrew Cuomo said.
John P. Nicolia received a total of $141,000 for selling his name in 2008 and 2009, according to a suit Cuomo's office filed Thursday in the state Supreme Court. Nicolia, of Williamsville, N.Y., never provided actual legal services for the collection agency, Eastern Asset Management, the attorney general said; collectors who called consumers to collect on debts claimed that they were calling from, or working with, "the law office of John Nicolia."
According to Cuomo's office, collectors sent standardized settlement letters citing nonexistent judgments to consumers, claiming "our legal counsel, John Nicolia, Esq. may review the status of your particular case at any time."
Eastern Asset, after invoking Nicolia's name, often falsely stated that the consumers would be charged with a crime; that they would go to prison or lose their property if they did not pay; that lawsuits had been filed against them; and that their driver's licenses would be suspended.
The suit seeks a court order barring Nicolia from allowing collection companies to use his name. It also seeks to impose civil penalties against Nicolia, who was not immediately available for comment.
