FERNDALE, Mich. – 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 extort money from them.
The suit was announced on July 9 but filed by the state on June 12 in Wayne County Circuit Court.
It claims that brothers Eric and Daniel Vander Ley formed 17 fraudulent LLCs using the exact names of well-known Ferndale businesses.
“Defendants Eric and Daniel Vander Ley formed these clone companies to capture the business names and harass the business owners to obtain money,” the lawsuit says. “The Vander Leys’ actions have caused severe damage to these small businesses, and the companies should be dissolved so they can no longer be used for such nefarious purposes.”
The suit seeks to formally dissolve all 17 Vander Ley’s companies and assess an undisclosed amount of fines.
The brothers, according to the lawsuit, took advantage of companies that were either using a different name from their listed name or weren’t in good standing with the Michigan Department of Licensing and Regulatory Affairs.
They then used those companies to accuse the original business owners of “copyright violations” and other unfounded legal claims.
The brothers would then harass and attempt to shake down the businesses for money in order to get the names back.
The ordeal began at the Downtown Ferndale Bike Shop, which has been near the corner of 9 Mile and Woodward since 2010.
Shop owner Jon Hughes tried to give Eric Vander Ley, a former part-time employee, a 1099 form after he worked at the bike shop in the summer of 2022.
Vander Ley was fired that summer.
The Vander Leys began a campaign of harassment that led to a protection order being filed.
Vander Ley’s brother, Daniel, had bought the name in August 2023 because the company had fallen out of good standing with LARA.
According to the Attorney General’s suit, Vander Ley sent Hughes a cease and desist letter in August 2024 to order Hughes to stop using the name “Downtown Ferndale Bike Shop.”
He demanded that Hughes sign and return an enclosed agreement, which required Hughes to pay him $2,500 “in lieu of litigation”.
He also started contacting business connections and threatening them with lawsuits, in one case emailing a business development manager for Jamis Bikes and demanding he stop doing business with Hughes.
Along with the bike shop, the brothers began buying a total of 17 other business names, including Como’s Restaurant, Urbanrest Brewing Company, Bags and Beads, Found Sound, and Beau’s Grillery.
In another one of the legal settlement attempts, Eric Vander Ley demanded $500 an hour from Urbanrest owner Zachary Typinski to discuss buying back the name of the company, which Typinski thought was a clerical error.
When Typinski’s attorney turned him down, the Vander Leys began harassing employees and customers.
At one point, according to the lawsuit, Eric stormed into the brewery demanding to see the business’ liquor license.
Local 4 attempted to speak with Hughes and Typinski, along with Nessel, but they were unable to talk due to the litigation.
The state has filed no criminal charges at this time.
If you have an LLC in the state of Michigan, here’s how to keep it in good standing with LARA:
- Filed all necessary reports and statements on time, such as annual reports for corporations and LLCs.
- Pay all required fees and taxes.
- Maintained a registered agent in the state (if applicable).
- Kept your business information up to date with LARA.
- Renewed any required licenses or permits.
