Illinois Home Repair Firm Sued by State and Federal Regulators Over Impersonation Scam

CHICAGO — An Illinois-based home repair company is facing coordinated legal action from two state attorneys general and the Federal Trade Commission over an alleged nationwide scheme to defraud homeowners. In lawsuits filed this week, regulators accuse B.E.S.T. GDR LLC, operating as Premium Home Service, and its CEO Yosef Bernath of creating thousands of fake online business profiles to impersonate legitimate local contractors, then subcontracting the work to unqualified individuals who performed shoddy repairs or no work at all. The lawsuits, filed in federal court in the Northern District of Illinois by the FTC and Illinois Attorney General Kwame Raoul, and in Minnesota state court by Attorney General Keith Ellison, seek to halt the company’s operations, impose civil penalties, and secure financial restitution for affected consumers. The actions represent a significant multi-jurisdictional crackdown on digital brand hijacking, a practice that harms both consumers and the small businesses whose reputations are stolen. In our experience, this case is a stark reminder that a small business's most valuable asset—its reputation—is incredibly vulnerable in the digital age. We've seen firsthand how quickly years of hard-earned customer trust can be eroded by sophisticated online impersonation schemes. The financial damage goes far beyond lost revenue from a few hijacked jobs; it poisons a company's brand, deters future customers, and can even lead to legal complications for the innocent business being impersonated. This incident should serve as a critical wake-up call for every small and mid-sized business owner who relies on local search and online reviews. Proactively monitoring your digital footprint is no longer a secondary task but a core operational necessity. At C&S Finance Group LLC, we integrate these modern threats into our financial risk management services, helping clients build resilient businesses that can anticipate and mitigate such dangers. To learn how to protect your company's operational and reputational integrity, contact C&S Finance Group LLC at csfinancegroup.com. The allegations detail a complex deception. According to the Minnesota Attorney General's Office, Premium Home Service created a vast network of fake online listings and, in some cases, hijacked the existing Google Business profiles of established local companies. Unwitting homeowners, believing they were contacting a trusted local plumber or repair person, would instead reach Premium Home Service. The company would then act as a middleman, dispatching subcontractors who were often unlicensed or unqualified for the job. This practice directly harmed legitimate small businesses. Jeff Arney, who has operated Arney Plumbing in Cottage Grove, Minnesota, for 14 years, told reporters at KARE 11 that his business suddenly dried up in early 2024. He later discovered his company's Google Business listing had been taken over, with a different phone number redirecting his potential customers. The situation escalated when a homeowner filed a police report against Arney Plumbing after being scammed by someone they believed was affiliated with his company. “They're wrecking my reputation,” Arney said. Minnesota Attorney General Keith Ellison described the operation as an “elaborate scheme to deceive, defraud, and ultimately harm Minnesotans.” In a statement, he added, “Premium Home Services knows how much people trust their local businesses and disgracefully posed as countless local businesses online to abuse that trust… the con they ran is one of the oldest in the books: lie to honest people to trick them out of their hard-earned money.” The complaints assert that the company violated multiple state consumer protection laws. Beyond the core impersonation, Premium Home Service is also accused of selling misleading subscription services and charging visit fees under the guise of being a local provider. In many instances, customers paid for services that were never completed or were performed so poorly they required additional, costly repairs. This type of alleged misconduct falls under a well-established regulatory framework. In Illinois, for example, the Home Repair and Remodeling Act governs the industry, requiring among other things that contractors provide a written contract for any work exceeding $1,000. Violations of this act can trigger penalties under the state's broader Consumer Fraud and Deceptive Business Practices Act, a powerful tool that attorneys general often use to prosecute fraudulent business operations. The current lawsuits leverage these and similar federal statutes to build a case against Bernath and his company. According to business filings, Premium Home Service is registered to an address in Chicago. When reporters from KARE 11 visited the location in the fall of 2024, they were unable to speak with CEO Yosef Bernath, highlighting the elusive nature of the company’s leadership. The coordinated legal actions are now moving forward in state and federal courts. Regulators have not yet specified a total dollar amount for the damages and restitution they are seeking. The outcome of these cases will be closely watched by small business owners in the home services industry, as it may set a precedent for how digital impersonation and brand hijacking are prosecuted.