U.S. Labor Department sues Savannah, Georgia, attorney to restore pension assets

Savannah, Georgia – The U.S. Department of Labor has sued Savannah attorney Benjamin Eichholz and the Eichholz Law Firm to recover assets belonging to the Eichholz & Associates P.C. Retirement Plan and the Eichholz & Associates P.C. Employees Pension Plan.

Filed in the U.S. District Court for the Southern District of Georgia-Savannah Division, the lawsuit alleges that the defendants violated the Employee Retirement Income Security Act by improperly transferring, lending or using plan assets. The defendants also imprudently lent plan assets, invested in high risk stocks and failed to ensure the plans were covered by a fidelity bond.

“Fiduciaries of employee pension plans must act solely in the best interest of plan participants,” said R.C. Marshall, regional director of the department’s Employee Benefits Security Administration in Atlanta, Georgia. “We are filing this lawsuit to ensure that losses suffered by participants are fully restored.”

The suit seeks a court order to require the defendants to restore to the plans all losses with interest or opportunity costs and to permanently bar them from serving in a fiduciary capacity to any employee benefit plan subject to ERISA. In addition, the suit asks the court to appoint an independent fiduciary at the defendants’ expense.

As a result of a criminal investigation conducted by EBSA and the U.S. Department of Justice, an indictment was filed against Benjamin Eichholz in August 2009. In December 2009, Eichholz agreed to plead guilty to one count of obstructing the department’s investigation and agreed to make restitution to plan participants, other than himself and his mother. Eichholz began serving a 21-month prison sentence in May.

In fiscal year 2009, EBSA achieved monetary results of $1.3 billion related to pension, 401(k), health and other benefits for millions of American workers and their families. Employers and workers can reach EBSA’s Atlanta Regional Office at 404.302.3900 or toll-free at 866.444.3272 for help with problems relating to private sector retirement and health plans. For more information, see www.dol.gov/ebsa.

Solis v. The Eichholz Law Firm P.C.
Civil Action File Number 4:10-cv-00162

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