Michigan Attorney General Dana Nessel has taken two Detroit-area brothers to court, accusing them of setting up 17 “clone” limited liability companies and using them to hassle Ferndale small businesses and try to squeeze out cash. The civil complaint names Eric and Daniel Vander Ley and asks a Wayne County judge to dissolve the companies and hit the brothers with civil fines. Targets cited in the filings include the Downtown Ferndale Bike Shop, Urbanrest Brewing Company, and several boutiques and restaurants in the city’s busy downtown strip. Court papers describe cease-and-desist letters, questionable copyright claims, and face-to-face confrontations that business owners say disrupted daily operations.
State Moves To Shut Down 17 Companies
In a press release from the Michigan Department of Attorney General, Nessel’s office says the Vander Leys formed these clone companies to capture the business names and harass the business owners to obtain money, and it is asking the court to dissolve all 17 entities. The complaint, filed in Wayne County’s 3rd Circuit Court, labels the conduct a public nuisance and a civil conspiracy. The attorney general’s announcement lists multiple downtown storefronts and a restaurant in Bloomfield Hills that the state says were swept up in the alleged scheme.
Owners Describe Aggressive Pressure Tactics
According to reporting by ClickOnDetroit, the lawsuit lays out a series of incidents in which owners received cease-and-desist letters paired with cash demands. One Ferndale bike shop owner was reportedly hit with a $2,500 “in lieu of litigation” demand. Urbanrest’s owner, according to the complaint, was told their time was worth $500 an hour to resolve the dispute. The suit also alleges that one defendant walked into the brewery demanding to see its liquor license, and that repeated contacts with employees, customers, and landlords eventually drew responses from law enforcement. Business owners told investigators the pattern rattled staff and patrons and dragged them into draining, defensive legal skirmishes.
How The Cloning Allegedly Worked
The complaint (PDF) filed by Nessel’s office includes formation records that show many of the defendant LLCs were created in late August and early September 2024, with specific LARA IDs and formation dates listed for each company. Prosecutors allege Eric and Daniel Vander Ley either organized those LLCs or served as their registered agents, then used the fresh filings to block legitimate business owners from bringing their own entities back into good standing. The document cites the Attorney General’s authority under MCL 450.4803, and the matter is filed under Wayne County case number 25-25-009137-CZ.
Legal Status
The state’s move is a civil action rather than a criminal one. Nessel’s office is asking the court to dissolve the listed LLCs and impose civil fines, but not to file extortion charges at this time. CBS Detroit updated its coverage yesterday to note that the attorney general’s allegations do not currently include an extortion count. If the court sides with the state, the registrations could be canceled and the defendants could face civil penalties along with court orders that bar them from making future filings under those business names.
What Local Owners Should Do Right Now
The Michigan Corporations Division urges small-business owners to double-check their entity status and resident-agent information on the MiBusiness Registry and to keep annual statements filed and current. Letting statements slide can leave an entity “not in good standing” and its name more vulnerable. According to state guidance, annual statements can be filed online through LARA’s portal, and owners who spot filings that look suspicious should talk with an attorney or contact the Attorney General’s office for help. Keeping a current resident agent on file and a working contact email can make the difference between getting official state notices and being caught off guard by private, fee-driven solicitations.
Hoodline covered the initial filing in July 2025, for background on the initial clone LLC lawsuit. The case will move forward in Wayne County, and upcoming court calendars and filings will determine whether local owners get a quick ruling or end up in a longer legal slog. We will be watching motions and hearings closely for developments that affect Ferndale’s downtown businesses.
