Savannah Personal Injury Lawyer Pleads Guilty to Obstruction

Savannah personal injury attorney, Benjamin Eichholz, entered a plea in federal court yesterday to obstructing a Department of Labor (DOL) investigation by repeatedly transmitting false and misleading documents to the Department of Labor and by making false and misleading statements to investigators. Eichholz, 58 years old, faced a 77 count indictment that charged him with mail fraud, money laundering and obstructing the DOL investigation and trial was to begin in 3 weeks. Eichholz was prominent locally for his TV advertisements that hawked a phone number of "win win 1." Eichholz faces a maximum penalty of five years in prison and a $250,000 fine.

In July 2006 Eichholz was barred for two years from practicing in federal court by the United States Bankruptcy Court for actions that were characterized in the disciplinary order of the Court as “sloppy at best and misleading at worst.” The order barring Eichholz from appearing in Bankruptcy Court was later adopted by the District Court judges.

 

Eichholz had also faced a class action lawsuit that accused him of overcharging his clients in settlements from civil cases. That case was settled in 2006, but formed the basis of the government’s similar transaction notice in the criminal case, compounding the difficulty of defending the case. It will be interesting to see if the uncharged conduct figures into Eichholz’ sentencing calculation.

Gene Cauley, Arkansas Class Action Lawyer, Pleads Guilty

The WSJ Law Blog reports that Gene Cauley, an exceptional young class action plaintiff’s lawyer, entered a guilty plea in federal court in Manhattan yesterday to one count of mail fraud and one count of wire fraud. The article chronicles Cauley’s meteoric rise from failing the Arkansas bar exam upon graduation from law school in 1993 to making more than $4 million in 2000. Cauley was aided, when he was a fledgling lawyer by Bill Lerach, the now defrocked plaintiff’s lawyer, who has also pleaded guilty to federal charges and was sentenced last year to 24 months in prison.

Cauley’s plea involved the admission that he misappropriated $9.3 million of funds that were to be distributed to clients from a class action settlement. Cauley agreed to an hours long interview with the WSJ Law Blog and indicated that he has suffered from severe depression for years.

A good read and cheers to the Law Blog for bringing this fascinating personal look at this case.

Former Paul Hastings Lawyer Pleads Guilty

Bloomberg reports that a former tax lawyer at Paul Hastings Janofsky & Walker, LLP, in New York, plead guilty yesterday to federal charges of insider trading. Eric Holzer, was a tax associate at the Paul Hastings offices in New York, according to Bloomberg.

Holzer, 34, entered a plea to conspiracy and securities fraud in federal court in Manhattan for trading on illegal tips given to him by Matthew Devlin, a former Lehman salesman, who had stolen the information from his wife.

Paul Hastings reports that the charges were unrelated to Holzer’s duties and that they had cooperated with the government.

Holzer faces up to 18 months in prison, and agreed to forfeit $119,000.