Repo Company Lawsuit Alleges Excessive Force in Impound Dispute Tied to City’s LPR System

Complaint alleges violations of federal civil rights protections related to unreasonable seizure and excessive force, along with false arrest and false imprisonment

Repo Company Lawsuit Alleges Excessive Force in Impound Dispute Tied to City’s LPR System

Freeport, NY – May 17, 2026 – What began as a voluntary repossession turned into a nightmare as the vehicles expired registration triggered an LPR hit by the city’s “Ring of Steel” program. Tackled, cuffed and arrested, the repo company owner is firing back with allegations of city receiving kickbacks in a lawsuit against the city for violations of his civil rights.

A federal lawsuit filed in the United States District Court for the Eastern District of New York is drawing attention to a municipality’s vehicle seizure practices and the role of law enforcement during impound operations tied to license plate reader (LPR) systems.

The Complaint

The complaint, filed on May 4, 2026, by Daniel Donlon against Officer Martin Zimmer, an unidentified police officer listed as “John Doe,” and the Village of Freeport, alleges civil rights violations stemming from an August 2024 traffic stop involving a repossessed vehicle. Donlon is seeking compensatory and punitive damages under federal civil rights statutes, claiming violations of his Fourth, Fifth, and Fourteenth Amendment rights.

According to the complaint; Donlon, owner of Nocturnal Towing Corp., was conducting a repossession assignment on behalf of American Honda Finance Corporation when the incident occurred. The lawsuit states that after repossessing a Honda CR-V from a debtor’s residence, Donlon directed an employee to drive the vehicle back to the company’s storage facility while he followed in a tow truck.

The filing alleges neither Donlon nor his employee was aware at the time that the vehicle’s registration had expired.

As the repossessed vehicle traveled through the Village of Freeport on August 17, 2024, the lawsuit claims the municipality’s fixed LPR network, referred to in the complaint as the “Ring of Steel,” detected the expired registration and alerted local police. Officer Zimmer subsequently initiated a stop of the repossessed vehicle.

Kick Back Allegations

The background information in the complaint claims what is described as Freeport’s “seizure-for-profit and kickbacks program.” Donlon alleges that prior to September 12, 2022, the Village implemented a system known as its “Ring of Steel,” which uses fixed license plate readers (LPRs) to scan vehicles entering or exiting the area.

When an LPR camera detects expired or suspended registration on a vehicle, patrol officers are notified to pull over and impound it. The suit goes on to state that: “The sole reason for which the Defendant Village of Freeport and its Police Officers seize cars that have expired or suspended registrations is to generate revenues for the Village.”

Owners must pay fees to both the Village and contracted tow companies, who allegedly pay kickbacks to the municipality, for their vehicles’ release. The document claims this practice generates more than $900,000 annually for Freeport.

The Arrest

According to the complaint, when officers pulled over Donlon and his employee driving the repossessed Honda, they informed Donlon that the vehicle would be impounded and towed by a company contracted through the Freeport Police Department rather than remaining in the custody of Donlon’s repossession company.

The suit alleges Donlon refused to voluntarily surrender the vehicle keys.

The complaint then alleges Officer Zimmer physically tackled Donlon from behind during the encounter, causing injuries including a concussion and facial abrasion. Donlon further claims he was arrested on charges of obstructing governmental administration and resisting arrest.

The lawsuit contends that Donlon did not interfere with police duties beyond refusing to turn over the keys and argues the use of force and arrest lacked legal justification. It also alleges that another officer present failed to intervene during the incident.

In addition to the incident itself, the complaint raises broader allegations regarding supervision and training within the Freeport Police Department. The filing references prior lawsuits involving Officer Zimmer dating back to 2015, including allegations of excessive force and improper restraint techniques. Donlon alleges the Village failed to properly supervise or train the officer despite prior litigation.

The lawsuit asserts three causes of action, including alleged violations of federal civil rights protections related to unreasonable seizure and excessive force, along with false arrest and false imprisonment claims under New York law.

Donlon is seeking $1 million in compensatory damages per count against all defendants jointly and severally, along with punitive damages against the individual officers, attorneys’ fees, court costs, and accrued interest.

The case is being handled by Campanelli & Associates P.C., with attorney Andrew J. Campanelli representing the plaintiff. The matter was filed under case number 2:26-cv-02646 in the Eastern District of New York.

Source: The South Shore Press

Repo Company Lawsuit Alleges Excessive Force in Impound Dispute Tied to City’s LPR System – Repo Company Lawsuit Alleges Excessive Force in Impound Dispute Tied to City’s LPR System – Repo Company Lawsuit Alleges Excessive Force in Impound Dispute Tied to City’s LPR System