Brad Beech Sues Brother Over Trucking Company Stake & Embezzlement Claims

Brad Beech is suing his older brother Harvey Beech, who is president of North Little Rock trucking firm EOS Inc. (Steve Lewis)

Brad Beech now wishes he’d never tried to hide his ownership in a North Little Rock trucking company as a feint in his divorce case.

He said he was building the business in 2019 with his older brother, Harvey, who had started EOS Inc. six years earlier.

The brothers teamed up to start a companion logistics company called Everyone On Time Safely Logistics LLC, with each owning half, according to a lawsuit filed in Pulaski County that has started the legal dispute over stake in one of the state’s fastest-growing trucking companies.

Brad has alleged that neither brother wanted Brad’s soon-to-be ex-wife, Tara Beech, to know about the logistics company or learn of Brad’s claimed 30% interest in EOS.

“We conspired to lie to the courts,” Brad Beech told Arkansas Business recently. “The idea was to lie, hide, conspire to hide everything from the courts. That way there was no risk of her getting half of my half.”

But Harvey Beech’s attorney, John Buzbee of Nixon Light & Buzbee of Little Rock, said in an email to Arkansas Business that “despite his claims, Brad Beech has NEVER had any interest in EOS.”

Brad was an employee, “nothing more, and he was terminated after he was discovered embezzling corporate funds to pay his personal credit card twice,” Buzbee wrote. “I’m sure Brad has sought to hide MANY assets from his ex-wife. That has nothing to do with Harvey.”

After his divorce was final in October 2022, Brad says his brother should have drawn up legal paperwork showing that he had a 30% interest in the trucking company and paid him the millions of dollars Brad says he was owed.

Instead, Harvey Beech accused Brad of embezzling from the trucking company, an allegation that Brad denies.

In 2023, the quarrel reached its peak, and Harvey had Brad escorted from the company office by two North Little Rock police officers.

In October 2023, Brad was charged with seven felony counts of fraudulent use of a credit card or debit card. Those charges were dropped in September because there wasn’t enough evidence to support the charges, said Pulaski County Prosecuting Attorney Will Jones.

Meanwhile, Brad filed a lawsuit in 2023 against his sibling to dissolve the logistics company. He also is seeking about $3 million he said he’s owed. The lawsuit said that Brad is the majority equity holder of the logistics company while Harvey is the majority holder of the voting stock.

Harvey Beech denied the allegations and filed a counterclaim seeking a judgment of $230,000 and confirmation that Brad isn’t a member of the logistics company.

Arkansas Business requested an interview with Harvey or a statement from him. In an email to Arkansas Business through his attorney, Harvey said that he loves Brad “and it’s hurting our family to watch him suffer in such a tough time in his life.”

“Allowing my brother back in my life and into my business in 2019 proved to be a mistake,” Harvey wrote. “Having to endure the last two years of him working for me broke my heart as I struggled with what to do about him stealing money. It is a sad family situation. We will all continue to hope and pray for my brother to have a [breakthrough] and for his well-being.”

The case is a cautionary tale about going into business with relatives, Brad Beech said in an interview with Arkansas Business. “Never do anything that’s not in writing up front, no matter what it is, no matter how major or minor,” he said. “Never trust anyone.”

Brad Beech also said he’s worried that even if he wins a judgment, he won’t be able to collect due to what Brad described as a downturn in business at EOS.

Family Ties

Brad said that he and Harvey had “a great childhood” on a 60-acre farm in Sheridan.

And while they had their own bedrooms, they chose to share Harvey’s bedroom because he had bunkbeds, Brad said.

They are the sons of Arthur Beech, who owned a trucking company and eventually sold it to another trucking firm in 2013.

Harvey Beech, who had worked with his father, took the proceeds from the sale and started EOS.

EOS struggled early. The IRS filed a federal tax lien against EOS in 2016 for unpaid taxes that dated back to 2013 and covered the tax period that ended June 30, 2015. The bill totaled $694,319. The lien was released in September 2021.

As EOS chugged along, Brad said that Harvey asked him to join the company and, in exchange, he would give him 30% of it. “All that was verbal,” Brad said.

Under Brad’s leadership as CEO, the company flourished, he claims. Brad said he personally invested about $500,000 into the company to help replace EOS’ fleet of 82 old trucks. The company’s annual revenue grew from $16.3 million in in 2018 to $108 million in 2022.

EOS’ brokerage entity alone generated profit of more than $7 million during that period, Brad said.

But Brad’s personal life wasn’t as smooth.

‘I Didn’t Have a Choice’

In November 2019, Tara Beech filed for divorce from her husband of six years, Brad Beech.

Brad said he was threatened with being kicked out of the company if he disclosed his interest in EOS or the brokerage firm during the divorce proceedings.

“I didn’t have a choice, because I was facing losing a $250,000-a-year salary,” Brad told Arkansas Business. “I had 50% ownership in logistics. I wasn’t in a position where I could [say no].”

But Brad said that while he wasn’t willing to perjure himself, he wasn’t going to release any details about the ownership in the company either.

Brad also said he didn’t disclose the information to his own divorce lawyer.

“Ultimately, we had a good thing going at the time,” Brad told Arkansas Business. “I didn’t want her to get any money either, but I just went along with the plan.”

While the divorce was pending, Brad said he didn’t take a dividend from the company because Tara might get a portion of it.

After Brad’s divorce was final in October 2022, Brad wanted to sit down with EOS’ corporate attorney and Harvey and draw up the corporate papers.

“But Harvey kept putting it off,” Brad said. And Brad kept pushing the issue.

Brad said he didn’t expect one large payment, but he wanted his money to start flowing to him. Brad said he didn’t mind getting the money over time. “I’m here for the long run,” he said.

Police Action

But Brad said Harvey wasn’t willing to meet to hammer out the terms. In June 2023, Brad sent his brother a text message, seeking a meeting.

While at work on June 29, 2023, Brad said, he was escorted out of EOS’ office by two North Little Rock police officers for allegedly “creating a hostile work environment.”

Harvey had handed Brad a long letter that outlined the reasons why he was being terminated, including allegations that he was using the credit card for unauthorized expenses and his actions were detrimental to “my mental health.”

Harvey said in the letter, which is attached as an exhibit in Brad’s lawsuit, that Brad owed EOS and its affiliated companies $836,133 as of May 2023.

“I am currently not seeking to recover any of that even though you have committed embezzlement and would have been fired and prosecuted a long time ago if you worked for anyone else in this world,” Harvey said in the letter.

Harvey said he knew about the alleged unauthorized payments for about a year, since the second quarter of 2022.

“I have allowed it to go on since I found out again because I have been afraid it would further splinter our families and our kids are more like brothers and sisters instead of cousins,” Harvey wrote.

Harvey said EOS would continue to pay Brad’s current compensation package for 90 days “in hopes that you go to some sort of wellness center for that period.”

Harvey also said that EOS will pay him $1 million over the next five years “in return for a voluntary surrender of your shares of EOS Logistics.”

Brad asked an Arkansas Business reporter: If a person is stealing $800,000 from you and “causing you all this trouble, are you going to offer him $1 million?”

Brad rejected the offer.