Through its investigation, the DOL found a total of 17 retirement, benefit and profit-sharing plans were found to be affected, including a deferred-compensation plan for Beaver County employees and the profit-sharing plan for law firm Leech Tishman Fuscaldo & Lampl.
From October 2022 to January 2024, about $23.6 million was transferred from plans RiversEdge managed into the #RERREBTE account, and $18.8 million went from there to different retirement plans, according to the suit. Another $5.5 million in plan assets was transferred from the #RERREBTE account to PNC Bank, the suit said.
Additional Findings
The DOL said some transactions were deliberately kept at less than $25,000 each to avoid the banks’ scrutiny, and some were listed as authorized by Palguta’s wife even though she had not been a RiversEdge employee for years.
In February, U.S. District Judge Marilyn Horan signed off on a temporary restraining order that forbade RiversEdge from any further involvement in trust assets and barred the company and Palguta from withdrawing any funds from their two corporate accounts into which they had transferred plan assets.
