Opinion ID: 174447
Heading Depth: 2
Heading Rank: 2

Heading: DOL’s April 18, 2007 Interview

Text: In February 2007, based on Form 5500s filed by Eichholz, the DOL began a civil investigation into Eichholz’s management of the plans. The DOL suspected that the plans’ assets may have been used for personal gain because of (1) the small number of plan participants, only a few of which held an interest in a large percentage of the assets, and (2) the large number of loans listed as the plans’ assets. In March 2007, the DOL notified Eichholz of its investigation and requested an interview. During an April 18, 2007 interview with a DOL investigator, Eichholz said that he purchased Flora Danica china as an investment for the plans. However, the investigator later learned that the china was displayed in a cabinet in Eichholz’s home. The investigator asked Eichholz about the plans’ loans. Eichholz said that a $50,000 loan to James Cole was repaid the week before the interview. However, when the DOL investigator interviewed Cole, he denied receiving or paying back 3 a loan from the plans. The DOL investigator then determined that the $50,000 check representing the purported Cole loan was deposited into an account controlled by Eichholz. Eichholz told the DOL investigator that the plans issued a loan to an individual identified only as “Eubanks.” The DOL investigator could not locate Eubanks, but determined that the check representing the loan proceeds was deposited into an account held by Eichholz. Finally, during the interview, Eichholz told the DOL investigator that he did not have an ownership interest in Delta Building Systems, a company that received several loans from the plans. The DOL investigator later learned that Eichholz owned 100 percent of the company and that a few days before the interview Eichholz had filed documents with the Georgia Secretary of State’s office removing his name as the chief executive officer.