Department of Justice Files Complaint Against B.E.S.T. GDR, LLC, Doing Business As Premium Home Service, and its CEO Yosef Bernath for Violations of the FTC Act and Related Laws

The Department of Justice, acting on a referral from the Federal Trade Commission (FTC), along with the Attorney General of Illinois and the U.S. Attorney for the Northern District of Illinois, announced today the filing of a civil complaint to stop an Illinois company and its owner from deceiving consumers in connection with the sale of home repair and improvement services in violation of federal and state law. The matter was investigated by the FTC and the Office of the Illinois Attorney General.

The Department of Justice filed the complaint in the U.S. District Court for the Northern District of Illinois, against B.E.S.T. GDR, LLC, doing business as Premium Home Service, and its founder and CEO, Yosef Bernath. As alleged in the complaint, the defendants orchestrated a nationwide scheme which 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. These profiles 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.

"When Americans shop for home services, they are not just choosing the lowest price; they are investing in their home and assessing the reliability of the person they let through the front door," said Assistant Attorney General Brett A. Shumate of the Department of Justice's Civil Division. "The Department of Justice is committed to working with the FTC to protect consumers from businesses that misrepresent their identities and the quality and reliability of their services."

"Premium Home Service's use of fake business profiles and reviews violates federal and state laws, harming consumers and businesses," said Christopher Mufarrige, Director of the FTC's Bureau of Consumer Protection. "The Trump-Vance FTC is committed to addressing deceptive conduct that harms the American people and undermines competition."

"Premium Home Service spent years establishing fake businesses with fake reviews to lure in customers who were in need of home repairs," said Illinois Attorney General Kwame Raoul. "Individuals who scam the unsuspecting public have no place in our communities, and I appreciate the partnership of the Federal Trade Commission and the Department of Justice in working to hold this company accountable."

The complaint seeks a permanent injunction to prohibit the defendants from future violations, monetary civil penalties, and redress for injury caused to consumers.

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 FTC is represented in this action by William J. Hodor and Karen D. Dodge. The Office of the Illinois Attorney General is represented by Assistant Attorneys General Amanda Palmer, Dale Lichtenstein, Thomas P. James, and Janice Parker.

Additional information about the Enforcement and Affirmative Litigation Branch and its enforcement efforts may be found at https://www.justice.gov/civil/enforcement-affirmative-litigation-branch.