Summary: A Pennsylvania federal judge granted the DOL’s preliminary injunction against RiversEdge Advanced Retirement Solutions, finding fiduciaries embezzled millions from 17 retirement plans. The court removed RiversEdge and CEO Paul Palguta from serving plans, noting they accelerated theft since November 2023, including a $180,000 withdrawal in January 2024. While defendants didn’t contest the injunction, the case continues and may face additional ERISA or state lawsuits. Legal experts call it a DOL victory demonstrating vigorous ERISA enforcement against fiduciaries who violated prohibited transaction rules by stealing plan assets.
“Outside of the Rule 19 entities, defendants have ‘essentially consented to the entry of a preliminary injunction,’ where one of the decisive factors influencing a court order is the likelihood of the motion to succeed.”
