September 18, 2025
Ponzi Scheme
Who: Daryl F. Heller of Lititz, Pennsylvania, and his companies Prestige Investment Group, LLC and Paramount Management Group, LLC.
What regulators allege: A multi-year Ponzi scheme involving investor funds raised to buy and operate ATMs. (Learn more: Ponzi scheme)
How much: More than $770 million raised and approximately $400 million in investor losses, according to filings.
Status: The SEC filed a civil action and press release on September 3, 2025. See SEC litigation release and SEC press release. The U.S. Attorney’s Office for the Eastern District of Pennsylvania announced related criminal charges the same day.
According to the SEC’s complaint and press release, from January 2017 through June 2024 Heller and Prestige raised more than $770 million from about 2,700 investors to invest in ATMs operated by Paramount. The SEC alleges the defendants misrepresented the size and profitability of the ATM network and paid investor distributions primarily with new investor money and short-term loans, rather than ATM revenue. The SEC also alleges more than $185 million of investor funds were misappropriated for personal and other business uses.
In a parallel criminal case, federal prosecutors charged Heller with one count of securities fraud and four counts of wire fraud. The indictment alleges that many of the ATMs purportedly purchased for investors either did not exist or were not in operation, and that investor payments stopped in April 2024, leaving investors with unpaid principal of about $402 million. The government states that Heller was arrested and faces a maximum possible sentence of 100 years if convicted. Allegations in the indictment are accusations only.
The SEC’s civil action charges violations of the antifraud provisions of the Securities Act and Exchange Act and seeks permanent injunctions, disgorgement with prejudgment interest, civil penalties, a conduct-based injunction, and an officer and director bar against Heller.
Investors who placed funds with entities associated with Prestige Investment Group, the Prestige ATM Funds, the WF Velocity ATM Funds, or Paramount Management Group could be affected by these proceedings. If you received offering materials or monthly distribution statements tied to ATM revenues, you should preserve those records.
January 2017: Fundraising for ATM investments begins, according to the SEC.
April 2024: Investor distributions allegedly stop.
June 2024: SEC alleges fundraising ranged through this date.
December 2024: DOJ states Paramount went out of business.
September 3, 2025: SEC files civil action and issues press release; DOJ announces indictment and arrest.
Document everything. Save offering documents, subscription agreements, statements, emails, and text messages.
Do not accept quick buyout offers that require releases of claims without legal review.
Speak with counsel experienced in Ponzi scheme recovery. Early action can improve recovery options, including potential claims against third parties.
Is this confirmed fraud or only allegations?
These are allegations in civil and criminal filings. No liability has been proven unless or until there is a judgment or conviction. See the SEC litigation release and DOJ press release for current status.
What laws does the SEC say were violated?
The SEC alleges violations of Securities Act Section 17(a) and Exchange Act Section 10(b) and Rule 10b-5.
How big are the alleged losses?
The SEC estimates approximately $400 million in investor losses. DOJ cites unpaid principal of about $402 million.
I received fixed monthly payments from ATM investments. Does that matter?
Yes. Regulators allege the monthly payments were funded largely by new investments rather than operating revenues, a hallmark of a Ponzi scheme.
What relief is the SEC seeking?
Permanent injunctions, disgorgement with prejudgment interest, civil penalties, and officer and director bars against Heller, plus a conduct-based injunction.
If you invested with Prestige Investment Group, the Prestige ATM Funds, the WF Velocity ATM Funds, or Paramount Management Group, contact ChapmanAlbin for a free, confidential case review. Call (877) 410-8172 or submit our contact form to get started.
SEC Press Release, Sept. 3, 2025: SEC charges Heller, Prestige, and Paramount
SEC Litigation Release LR-26387, Sept. 3, 2025: Case filed in E.D. Pa., antifraud charges and remedies sought
DOJ EDPA Press Release, Sept. 3, 2025: Indictment and arrest announced
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