Boston Developers Sue Bank For Disclosing Financial Information
A group of developers is suing Eastern Bank for allegedly disclosing personal financial information that was published on a third-party site.
City Realty Group co-founders Fred Starikov and Stephen Whalen along with developer Matthew Zuker sued the regional financial institution for posting personal financial statements and confidential financial information on online debt sale platform DebtX, according to a June 5 filing with the Suffolk County Superior Court.
The three men claim that the information Eastern Bank disclosed includes personal financial statements, bank account information, credit history reports, tax returns and mortgage statements. The developers say Eastern Bank didn't disclose any intent to transfer or display nonpublic information.
The lawsuit was first reported by Banker & Tradesman. City Realty and Eastern Bank didn't respond to Bisnow's requests for comment.
The information also includes specific details of more than 50 active properties owned by the City Realty founders, including purchase prices, estimated values, current adjusted amount of debt and gross rental income from properties.
The plaintiffs argue that the information didn't relate to any "legitimate business purposes" and wasn't necessary for any prospective debt purchases.
The lawsuit specifies that Eastern Bank markets itself as taking "every precaution to make sure your personal information remains safe," arguing that the representation is false, misleading or intended to deceive the customers, including the plaintiffs.
The information that the three developers alleged was unlawfully published came out as Eastern Bank sought to use DebtX to sell a construction loan tied to a Weston substance abuse treatment center.
Starikov, Whalen and Zuker worked together in 2021 on the redevelopment of a former senior living facility into a 110-bed substance abuse treatment facility. The facility at 75 Norumbega Road in Weston opened in 2022.
The plaintiffs sought a $29M loan and a $2M line of credit for the treatment facility from HarborOne Bank. The loan and line of credit were issued in 2022.
HarborOne was then acquired by Eastern Bank in the fall of 2025.
The lawsuit alleges that in early April 2026, Eastern Bank transferred the plaintiffs' personal information to DebtX without their knowledge.
The developers sent the bank a cease and desist letter demanding the institution take down the information. The bank responded saying the loan was "freely assignable" and that the information used was in connection with the standard process of engaging buyers of the debt, according to an exhibit included with the lawsuit.
Eastern Bank also argued in its response to the cease and desist letter that the developers can't provide one instance in which the financial documents containing personal information were shared outside of the third-party buying process.
Founded in 2004, City Realty says it has completed more than $500M in real estate developments in Greater Boston. Late last month, the developer received a key rezoning approval for what would be its largest project to date: a three-building mixed-use development on Route 9 in Brookline.
