News Summary

Michigan Attorney General Dana Nessel has filed a lawsuit against brothers Eric and Daniel Vander Ley for allegedly extorting small businesses in Ferndale by creating fake LLCs. The lawsuit, filed in Wayne County Circuit Court, aims to dissolve the 17 fraudulent companies the brothers established, which mimicked well-known local businesses. This extortion campaign has raised concerns among the small business community about vulnerabilities to such deceptive practices.

Ferndale — Michigan Attorney General Dana Nessel has filed a lawsuit against brothers Eric and Daniel Vander Ley for allegedly extorting small businesses in Ferndale by creating fake Limited Liability Companies (LLCs). The lawsuit was filed in Wayne County Circuit Court on June 12, 2025, and was announced publicly on July 9, 2025.

The brothers are accused of creating 17 fraudulent LLCs that mimicked the names of well-known local businesses, causing substantial damage to the original businesses. Nessel’s lawsuit seeks to dissolve all 17 sham companies and impose undisclosed fines on the Vander Ley brothers for their questionable practices.

According to the lawsuit, the Vander Leys targeted businesses that were either not in good standing with the Michigan Department of Licensing and Regulatory Affairs (LARA) or operated under different business names. In some cases, the brothers accused the original business owners of copyright violations and other legal claims in efforts to intimidate them.

The harassment campaign began at the Downtown Ferndale Bike Shop, owned by Jon Hughes. Eric Vander Ley, who had been employed by Hughes prior to his termination in the summer of 2022, allegedly initiated a series of harassing actions against him following his dismissal. In August 2023, Daniel purchased the name “Downtown Ferndale Bike Shop” after it fell out of good standing with LARA.

Subsequently, in August 2024, Eric sent Hughes a cease and desist letter demanding $2,500 for the continued use of the name. Hughes was also confronted by Eric, who contacted business connections to intimidate Hughes further by threatening to sue them over the name issue.

Other businesses reportedly targeted by the Vander Ley brothers include Como’s Restaurant, Urbanrest Brewing Company, Bags and Beads, Found Sound, and Beau’s Grillery. The owner of Urbanrest, Zachary Typinski, reported that Eric demanded $500 per hour to discuss a settlement regarding the company name, which Typinski believed to be a clerical oversight rather than a valid legal claim. After Typinski’s attorney declined the settlement offer, the harassment allegedly escalated, with Eric confronting employees and customers at the brewery and demanding to see Urbanrest’s liquor license.

As of now, the Attorney General’s office has stated that no criminal charges have been filed against the Vander Ley brothers. Nessel expressed that the conduct exhibited by the brothers is both illegal and reprehensible, reinforcing the need for the dissolution of the fraudulent companies they established.

Efforts by local media to gain insight from the affected business owners and Nessel were unsuccessful due to the ongoing litigation. The situation has raised concerns among the local business community regarding the vulnerabilities small enterprises face from unscrupulous practices, especially in a climate where many are still recovering from the impacts of recent financial challenges.

As the lawsuit progresses, it remains to be seen how the legal proceedings will unfold and whether the affected businesses will see relief from the actions of the Vander Ley brothers. The case highlights the importance of vigilance against fraud and the need for regulatory measures that protect the integrity of local businesses.