Two brothers are accused of forming fake companies that copied the names of popular Ferndale businesses and then using them to harass the real owners for money, according to a lawsuit filed by Michigan Attorney General Dana Nessel.
Filed in Wayne County Circuit Court, the lawsuit names Eric Vander Ley and Daniel Vander Ley, both of Detroit, along with 17 limited liability companies that the attorney general says were created to mimic existing Ferndale businesses. Among the affected businesses are Como’s Restaurant, Urbanrest Brewing Co., Bags and Beads, Tin Can Cocktails and Beau’s Grillery.
According to the complaint, Eric Vander Ley exploited lapses in business registrations with the Michigan Department of Licensing and Regulatory Affairs to set up the copycat companies. He then allegedly contacted the original business owners, accused them of copyright violations or other legal claims, and demanded money from them — with the help of his brother Daniel Vander Ley, the attorney general’s office said on Tuesday, July 9.
“In one instance outlined in the lawsuit, Eric Vander Ley allegedly accused the owner of Downtown Ferndale Bike Shop of copyright infringement and business interference, demanding $500 per hour for discussions related to a fabricated settlement,” according to a news release from the attorney general’s office. “When the owner refused to pay, it is alleged that Eric Vander Ley further escalated his harassment of the owner.”
Urbanrest Brewing Co. was also allegedly targeted, with the complaint describing threats and monetary demands that extended to employees and customers, the release and the lawsuit stated.
“These fraudulent LLCs were created to sow confusion, harass, and extract money from hardworking small business owners in Ferndale,” Nessel said in a statement. “Such conduct is not only reprehensible but illegal, and these sham companies must be dissolved.”
Nessel is asking the court to dissolve the 17 named LLCs.
The attorney general’s office did not say whether it is considering criminal charges.
An attorney for the Vander Ley brothers could not immediately be reached.
This article originally appeared on Detroit Free Press: Brothers accused of using fake companies to extort Ferndale business owners, AG says
Reporting by Nour Rahal, Detroit Free Press / Detroit Free Press
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