Michigan Attorney General Dana Nessel has filed a lawsuit against two men accused of creating fake companies to harass and intimidate small business owners in Ferndale in an attempt to “extract” money from them, her office announced Wednesday.
The lawsuit, filed in Wayne County Circuit Court, alleges Eric Vander Ley, with the help of his brother Daniel Vander Ley, formed 17 limited liability companies using the exact names of well-known Ferndale businesses, including Como’s Restaurant, Urbanrest Brewing Company, Bags and Beads, Tin Can Cocktails, and Beau’s Grillery.
“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. My office remains committed to protecting Michigan businesses.”
The lawsuit claims Eric Vander Ley exploited lapses in business registrations with the Michigan Department of Licensing and Regulatory Affairs to create clone entities that were identical to active, local businesses. He then allegedly used those companies to accuse the original business owners of copyright violations and other unfounded legal claims. As part of a phony legal settlement, he demanded money from the businesses owners, according to the lawsuit.
In one case, Vander Ley allegedly demanded $500 an hour from the owner of Downtown Ferndale Bike Shop for discussions related to a fictitious legal dispute. When the owner refused, the harassment allegedly escalated.
The complaint also describes similar tactics used against the owner and patrons of Urbanrest Brewing Company.
Nessel’s office is asking the court to dissolve all 17 LLCs that are part of the alleged scheme.
Nessel did not say whether her office is considering criminal charges.
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Update: This article was edited to more accurately quote the Michigan Attorney General’s office.
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This article appears in Jul 9-22, 2025.