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Two men harassed Ferndale small businesses via extortion scheme, Michigan AG alleges

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Michigan Attorney General Dana Nessel's office has that claims two brothers targeted small businesses in Ferndale with similar company names in order to extort money. 

The lawsuit was filed in Wayne County Third Circuit Court against 17 limited liability companies, along with Eric Vander Ley and Daniel Vander Ley, according to the press release. Nessel contends in the case that Eric Vander Ley worked with his brother, Daniel Vander Ley, to harass small business owners using names that were the same as the existing companies, and then attempting to coerce money.  

In filing the complaint, she seeks to dissolve the 17 LLCs and impose civil fines against the two men. 

"It is not intended for an individual to capture and claim names used by legitimate businesses and then hold them for ransom and harass the business owners in an attempt to obtain money from them under false claims of 'copyright infringement' or other interference with business interests," the lawsuit said. 

The Ferndale businesses that were victims of the scheme included Bags and Beads, Como's Restaurant, Beau's Grillery and Tin Can Cocktails.  

In one instance outlined in the lawsuit, the owner of Downtown Ferndale Bike Shop was hit with claims of copyright infringement and business interference, demanding $500 per hour for discussions related to a fabricated settlement. When the owner refused to pay, it is alleged that harassment of the owner escalated. 

The lawsuit also alleges that the owner of Urbanrest Brewing Company, along with his employees, faced similar harassment and demands for money. 

"These fraudulent LLCs were created to sow confusion, harass, and extract money from hardworking small business owners in Ferndale," Nessel said. "Such conduct is not only reprehensible but illegal, and these sham companies must be dissolved."  

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