The Securities and Exchange Commission has announced charges against Daryl F. Heller of Pennsylvania and his companies, Prestige Investment Group, LLC and Paramount Management Group, LLC, for allegedly orchestrating a multi-year Ponzi scheme that resulted in approximately $400 million in investor losses.
According to the complaint, from January 2017 through June 2024, Heller and Prestige raised over $770 million from approximately 2,700 investors, many of whom were retail investors, with promises to invest in ATMs operated by Paramount. The filing alleges that Heller exploited his control of both Prestige and Paramount to create the false impression of a successful, nationwide ATM network, assuring investors of fixed monthly distributions derived from income earned through ATM transaction fees and related charges. In reality, the defendants are accused of misrepresenting the true size and profitability of the ATM network, primarily funding distributions to investors with money from new investments and high-interest, short-term loans. Furthermore, Heller allegedly misappropriated more than $185 million of investor funds for his personal benefit, including the acquisition of a beach house and investments in his other businesses.
Scott A. Thompson, Associate Director of Enforcement in the SEC’s Philadelphia Regional Office, commented on the charges, stating, “Heller allegedly exploited his connections to his community and deceived retail investors into thinking the ATM investments were safe and reliable, when in reality he used only a fraction of investor funds to buy ATMs and misappropriated $185 million.” Thompson reaffirmed the SEC’s commitment to diligently pursuing those who prey on hard-working investors and holding wrongdoers accountable.
The SEC’s complaint, filed in U.S. District Court for the Eastern District of Pennsylvania, charges Heller, Prestige, and Paramount with violations of the antifraud provisions of the federal securities laws. The Commission is seeking permanent injunctions, disgorgement of ill-gotten gains with prejudgment interest, and civil penalties against the defendants, in addition to a conduct-based injunction and an officer and director bar specifically against Heller.
In a parallel development, the U.S. Attorney’s Office for the Eastern District of Pennsylvania has announced criminal charges against Heller. The SEC expressed its appreciation for the assistance provided by the U.S. Attorney’s Office for the Eastern District of Pennsylvania, the FBI, and the Internal Revenue Service in this matter.