B.E.S.T. GDR, LLC, doing business as Premium Home Service, and its CEO, Yosef Bernath, were charged with violating federal and state law in connection with the sale of home repair and improvement services, according to a complaint filed in the U.S. District Court for the Northern District of Illinois.
The defendants allegedly orchestrated a nationwide scheme that deceived consumers who sought local home services, such as plumbing, heating, or electrical work. According to the complaint, the defendants fabricated local identities nationwide by creating over 15,000 fake business profiles on Google Search and Maps.
The defendants allegedly used brick-and-mortar addresses often belonging to unrelated businesses and local phone numbers that routed to overseas call centers. The complaint further alleges that the defendants posted fake consumer reviews which praised their fake business profiles. In doing so, the defendants allegedly misappropriated the images of people from the staff directories of unrelated websites.
According to the complaint, the defendants collected fees by claiming to be a local company that provided services directly to the consumer. Instead, the defendants referred the work to third-party contractors. Posing as the defendants’ employees, many of these contractors lacked proper qualifications, performed substandard work, arrived late, or failed to appear at all.
The complaint alleges that this conduct violates the FTC Act, the FTC Rule on the Use of Consumer Reviews and Testimonials, the Illinois Consumer Fraud and Deceptive Business Practices Act, and the Illinois Uniform Deceptive Trade Practices Act. Additionally, the complaint alleges that the defendants violated the Gramm-Leach-Bliley Act because they obtained consumers’ debit and credit card numbers by making false statements or representations about the nature and value of the defendants’ fees.
The United States is represented in this action by Assistant Director Patrick R. Runkle, Senior Trial Attorney James T. Nelson, and Trial Attorneys Cadesby B. Cooper and Colin W. Trundle, from the Civil Division’s Enforcement and Affirmative Litigation Branch. The complaint seeks a permanent injunction to prohibit the defendants from future violations, monetary civil penalties, and redress for injury caused to consumers.
Defendant/Respondent: B.E.S.T. GDR, LLC, doing business as Premium Home Service, and its CEO, Yosef Bernath
Criminal Charges: Violating the FTC Act, the FTC Rule on the Use of Consumer Reviews and Testimonials, the Illinois Consumer Fraud and Deceptive Business Practices Act, and the Illinois Uniform Deceptive Trade Practices Act, and violating the Gramm-Leach-Bliley Act
City and State: Chicago, Illinois
Date: 2024 (complaint filed)
Sentence or Outcome: Currently pending
Dollar Amounts: None specified
Key Facts
- State: Illinois
- Category: White Collar Crime
- Source: DOJ Press Release â†â€â€
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