Westchester Firm Sued Over Fake Business Profiles, Reviews: Lawsuit

WESTCHESTER, IL – A Westchester company that maintains thousands of phone numbers for fake home repair businesses is being sued by the federal and state governments, authorities said Monday.

Illinois Attorney General Kwame Raoul and the U.S. Department of Justice have filed a lawsuit against Westchester-based Premium Home Service, and its chief executive officer, Yosef Bernath.

The lawsuit alleges the company created thousands of online business profiles for home repair companies that did not exist.

Raoul's office said it collaborated with the Federal Trade Commission and Department of Justice on the lawsuit.

According to the lawsuit, the company falsely claimed to have thousands of brick-and-mortar businesses around the country offering services including plumbing, electrical work and garage door repairs.

Instead, the suit alleges Premium Home Service created online business profiles for home repair companies using made-up names that often were not registered to do business.

"Premium Home Service spent years establishing fake businesses with fake reviews to lure in customers who were in need of home repairs," Raoul said in a news release. "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 also alleges many of the fake companies' positive reviews and five-star ratings were fabricated by Premium Home Service or people acting on its behalf.

According to the lawsuit, the company used local phone numbers to make consumers believe they were contacting nearby businesses. The defendants allegedly maintained more than 7,600 telephone numbers in more than 250 area codes across the country.

The suit says consumers could find one of the defendants' businesses at the top of online search results because the defendants used search engine optimization techniques to raise placement.

When consumers called, according to the lawsuit, their calls were routed to customer service representatives who were typically located overseas. The representatives then attempted to sell either a membership or a one-time fee for a service call and frequently collected debit or credit card information when a sale was made.

According to the lawsuit, the defendants then outsourced service requests to third-party providers, and many consumers complained those providers were unqualified, did subpar work or failed to show up. The complaint alleges well over 100,000 consumers nationwide have been deceived into calling and purchasing home repair services and memberships since at least 2018.

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

Raoul is seeking a permanent injunction to stop further deceptive practices, along with civil penalties and monetary relief for affected consumers.