Today, the United States Department of Labor brought an action in Federal court in the Western District of Pennsylvania against retirement plan recordkeeper RiversEdge Advanced Retirement Solutions, LLC and its President & CEO, Paul Palguta, to protect the retirement benefits of RiversEdge plan customers.

Mid Atlantic Trust Company has served as the non-discretionary custodian of these RiversEdge plan clients and continues to provide forensic and informational support to the DOL as the DOL pursues these claims against RiversEdge.

The DOL action lists Mid Atlantic and Schwab as Rule 19 defendants. As stated in the DOL’s proposed temporary restraining order, the DOL “has alleged no claims against the Rule 19(a) Defendants in its complaint” and “[t]he Rule 19(a) Defendants are named as parties-defendants for purposes of this Order so that the Department of Labor, the Independent Fiduciary and the Rule 19(a) Defendants can work cooperatively to assist the Client Plans.”

A spokesperson for Mid Atlantic Trust Company stated, “MATC recognizes that it and its affiliates at related AmericanTCS entities play an important role in helping employers provide retirement savings solutions to their employees. We are thankful DOL stepped in to address our concerns about actions by RiversEdge and will continue to work with regulatory bodies and appointed agents to help protect affected plans.”

About Mid Atlantic Trust Company

Mid Atlantic Trust Company (MATC), doing business as American Trust Custody, and its affiliated companies serve more than 125,000 retirement plans and trust accounts. MATC offers open-architecture access to mutual funds, ETFs, collective funds, managed models, unitized funds and brokerage accounts, along with a suite of tools to help plan advisors attract and retain business through a network of over 90 recordkeeper partners.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240126309814/en/