“The RiversEdge defendants are permanently enjoined from serving as fiduciaries, agents, service providers, administrators, and any other position or role involving the plans, and from exercising any authority or control with respect to the plans or their assets, whether or not those plans are covered by ERISA,” the filing said.
Denials and Legal Proceedings
RiversEdge and Palguta have continued to deny the allegations. The DOL’s Employee Benefits Security Administration filed suit against RiversEdge in January, alleging the company ran afoul of federal benefits law by mishandling assets in accounts covered by the law, along with some plans that are exempt from the law. The funds RiversEdge handled were in the custody of either Charles Schwab Trust Bank or Mid Atlantic Trust Co., according to the suit.
Financial Co $20M Resolve : The Allegations
The DOL said Palguta would transfer money from the plans the company managed into an account intended to temporarily hold cash awaiting disbursement, known as the #RERREBTE — pronounced “rebate” — account but then transfer that money into other plan accounts or into a RiversEdge corporate PNC Bank account.
