Minnesota Attorney General Sues B.E.S.T GDR, LLC for Consumer Protection Violations
TL/DR –
Minnesota Attorney General Keith Ellison has filed a lawsuit against B.E.S.T GDR, LLC, operating as Premium Home Services (PHS), and its owner Yosef Bernath for violating Minnesota consumer protection laws. The suit alleges that PHS and Bernath advertised hundreds of fictitious local businesses online to secure work which they then subcontracted, often to unlicensed and unqualified individuals, and posted fake reviews to promote the businesses. The lawsuit seeks to end this deceptive scheme, obtain restitution for Minnesota consumers, impose civil penalties, and recover the costs of investigation and legal fees.
Minnesota AG Files Lawsuit Against B.E.S.T GDR, LLC and Owner for Fraudulent Operations
Minnesota’s Attorney General, Keith Ellison, has filed a lawsuit against Illinois-based B.E.S.T GDR, LLC, also known as Premium Home Services (PHS), and its owner, Yosef Bernath. The allegations include serious violations of Minnesota consumer protection laws as PHS operated as numerous false local businesses to obtain work from Minnesotans, which was then subcontracted to unlicensed individuals.
“Premium Home Services leveraged trust in local businesses to conduct a deceptive and harmful scheme. We aim to hold the company and its owner accountable for their actions,” said Attorney General Ellison. The lawsuit seeks to put an end to these fraudulent operations and attempts to recover restitution for the consumers affected.
The lawsuit, filed in Hennepin County, unfolds a complex web of deceit. PHS and Yosef Bernath allegedly advertised hundreds of fake businesses with non-existent physical addresses in Minnesota and purchased local phone numbers to solidify the illusion. Calls from unsuspecting consumers were rerouted to an offshore call center run by PHS.
The allegations also extend to selling a subscription service to consumers and charging visit fees, under the pretense of long-term contracts with local home repair companies. PHS and Yosef Bernath are accused of being mere middlemen who subcontracted all the work hired to do.
Fake reviews were also allegedly part of the scheme, as PHS arranged for similar five-star reviews for its false businesses. These complaints surfaced after local Minnesotans reported poor workmanship from unlicensed workers from companies linked to PHS.
The Federal Trade Commission and the Illinois Attorney General are also taking action against PHS and Yosef Bernath, with lawsuits filed in the Northern District of Illinois court.
Minnesotans affected by PHS’s operations or similar schemes are urged to file a complaint with the Attorney General’s Office via its online complaint form or reach them by phone at (651) 296-3353 (Twin Cities) or (800) 657-3787 (Greater Minnesota).
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