Press Release
☷US Department of Labor obtains emergency court order to protect retirement plan assets alleges Pittsburgh company owner embezzled over $5 5M from plans
U.S. Department of Labor ( By Press Release office)
Feb 08,2024
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The US Department of Labor has taken urgent legal action to protect retirement plan assets . They claim that a Pittsburgh company and its owner embezzled over $5 . 5 million from the plans . The action , which took place on February 5 , 2024 , involves an emergency temporary restraining order issued by the U . S . District Court . The company , called RiversEdge Advanced Retirement Solutions LLC , is a third - party administrator for over 240 retirement plans . The investigation found that they violated the Employee Retirement Income Security Act of 1974 by transferring funds from the retirement plans into their own accounts . They also issued fraudulent account statements to hide their actions . As a result , the department has obtained a temporary restraining order that prevents the defendants from being involved with the trust assets , serving as fiduciaries or service providers , and withdrawing funds from their corporate accounts . They are also required to preserve relevant records and restore the missing plan assets . The department is seeking a permanent injunction and further relief for the affected plans . If your plans have been affected , it ' s a good idea to talk to a lawyer right away for advice and to make decisions that are in your best interest . According to Acting Regional Solicitor of Labor Samantha Thomas in Philadelphia , the U . S . Department of Labor will take legal action against fiduciaries who embezzle retirement plan assets . Their goal is to protect the assets of employee benefit plans and hold fiduciaries accountable for not fulfilling their legal duties . EBSA Regional Director Cristina O ' Brien in Philadelphia also emphasized their commitment to taking action against service providers who break the law and betray the trust of plan participants . The case in question is Su v . RiversEdge Advanced Retirement Solutions , LLC . , a Pennsylvania company , and Paul Palguta , an individual . The case number is 2:24 - cv - 00104 .
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