US Department of Labor obtains emergency court order to protect retirement plan assets; alleges Pittsburgh company, owner embezzled over $5.5M from plans

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Summary:

On February 5, 2024, the U.S. District Court for the Western District of Pennsylvania issued an emergency temporary restraining order against RiversEdge Advanced Retirement Solutions LLC and its owner Paul Palguta. The defendants are accused of embezzling at least $5.5 million in retirement plan assets from 17 plans between October 2022 and January 2024. The Department of Labor's Employee Benefits Security Administration (EBSA) found that the defendants transferred plan assets into their own corporate accounts, issued fraudulent account statements, and concealed the embezzlement. The restraining order prohibits the defendants from further involvement with the plans, serving as fiduciaries, and withdrawing funds from their accounts, except for court-ordered fees. EBSA is seeking a permanent injunction, requiring the defendants to restore the missing assets and prohibiting them from serving as fiduciaries in the future.