Metro Detroit men, according to the Michigan Attorney General, were involved in an attempt to extort and scam businesses in Ferndale.
In a bold move to protect small businesses, Michigan Attorney General Dana Nessel has filed a lawsuit against two Metro Detroit men and a collection of limited liability companies (LLCs). The lawsuit accuses the defendants of employing deceptive practices against multiple small businesses in Ferndale, a city in Michigan.
At the heart of the allegations are Eric Vander Ley and Daniel Vander Ley, who are accused of orchestrating an extortion scheme by creating 17 fake LLCs. These LLCs were cloned from the names of legitimate local businesses, and were used to harass and demand money from the real business owners.
The Vander Ley brothers allegedly exploited vulnerabilities in the state's business registration system to create these fraudulent LLCs. For instance, Daniel Vander Ley is named as the organizer and registered agent of a company using the same name as Downtown Ferndale Bike Shop.
One of the businesses targeted by this alleged scheme is Urbanrest Brewing Company, where the owner and employees, as well as customers, were harassed after pushing back against Vander Ley's demands. In another case, the owner of Downtown Ferndale Bike Shop received a cease-and-desist letter from Defendant Eric Vander Ley alleging infringement on trademarks and copyrights in the name of 'Downtown Ferndale Bike Shop'.
The lawsuit seeks the dissolution of Vander Ley's "clone corporations", the award of fines against both defendants, and a court order prohibiting them from engaging in similar conduct in the future. Nessel's office believes that the creation and use of these LLCs was intended to sow confusion, harass, and extort money from small business owners in Ferndale.
The alleged actions of the defendants are considered reprehensible and illegal by Nessel's office. Such conduct is not only reprehensible but illegal, and these sham companies must be dissolved. The lawsuit also accuses the defendants of coercing small businesses into settling bogus legal claims, a practice that Nessel's office finds particularly egregious.
In 2023, the owner of Downtown Ferndale Bike Shop noticed that his business registration was no longer in "good standing" on state websites. Eric Vander Ley's demands towards the owner escalated to a point that a personal protection order was obtained against him.
Nessel's office is investigating whether other LLCs were created to carry out similar schemes. The Attorney General's office is seeking a court order to prevent the defendants from engaging in similar conduct in the future, and to send a clear message that such behaviour will not be tolerated.
- This alleged extortion scheme, involving the creation of fake LLCs, falls under the category of crime and justice as it involves illegal activities such as extortion and fraud.
- The general-news topic could also cover the ongoing lawsuit filed by Michigan Attorney General Dana Nessel, which focuses on politics by targeting small business protection laws and alleging deceptive practices against the defendants.
