A Sewickley employee benefits adviser faces losing his stylish, 129-year-old home, diamond jewelry, wine collection — even college savings accounts for two children — after federal authorities accused him Thursday of pilfering $16.4 million from client accounts over 11 years.
In a two-count information filed Thursday, which is the basis for criminal charges, in federal court in Pittsburgh, RiversEdge Advanced Retirement Solutions LLC founder Paul Palguta was accused of defrauding clients out of at least $16 million between 2013 and 2024 to “support his lavish lifestyle,” according to a filing by U.S. Attorney Eric G. Olshan. Upon conviction, federal investigators said they would seek forfeiture of Mr. Palguta’s bank accounts, golf simulator, gold bracelets, necklaces, designer bags and other belongings.
The forfeiture would also include Mr. Palguta’s 20,000-square-foot Victorian home, which was purchased in 2020 for $1.2 million, according to Allegheny County real estate records.
In a January complaint, the U.S. Department of Labor alleged that Mr. Palguta and RiversEdge embezzled at least $8 million from 17 accounts and tried to conceal the shortfalls by shuffling money from other accounts. A month-long forensic audit the following month uncovered bigger losses.
Among the 240 retirement and profit-sharing accounts Mr. Palguta managed were ones for a Gibsonia senior living complex, a Vermont news organization, a dental practice in Hawaii and many small employers, including Etna-based Hampton Technical Associates.
RiversEdge Advanced Retirement Solutions LLC was founded in 2009 by Mr. Palguta, who was was described as a 25-year veteran of the retirement services industry in an online profile. Things began to unravel in October 2023 when Mr. Palguta placed an order to buy shares for the Beaver County Deferred Compensation Plan, but the plan did not have enough cash to complete the order.
But the transaction went through in November, a few weeks later, after $1.7 million had been deposited in the Beaver County plan account. Investigators said the deposit money was simply shifted from other accounts, which tripped an audit by Homestead-based American Trust Custody.
First Published: November 1, 2024, 7:45 p.m.
