Investor Alert: SEC Charges Daryl F. Heller and His Companies in Massive $770M ATM Ponzi Scheme
Summary
The U.S. Securities and Exchange Commission (SEC) has officially charged Daryl F. Heller, along with Prestige Investment Group, LLC, and Paramount Management Group, LLC, with orchestrating a multi-year Ponzi scheme. The allegations include raising over $770 million from approximately 2,700 investors — many retail investors — under the guise of an ATM network. Investors were promised fixed monthly distributions from ATM transaction fees, but in truth, distributions were funded by new investments and high-interest loans. Over $185 million of investor capital was misappropriated for Heller’s personal gain.
A federal complaint filed on September 3, 2025 in the U.S. District Court for the Eastern District of Pennsylvania seeks permanent injunctions, disgorgement with prejudgment interest, civil penalties, and an officer-and-director bar against Heller.
Key Allegations
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False representations: Investors were led to believe their funds were being used to acquire and operate ATMs nationwide, generating profits. In reality, few ATMs existed or were functional.
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Ponzi-like structure: Distributions to earlier investors were paid with money from newer investors.
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Misuse of funds: Investor capital was diverted to Heller’s personal expenses, including a New Jersey beach house, cannabis ventures, and substantial commissions to recruiters.
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Collapse occurred: Distributions stopped in April 2024, followed by false assurances of a full capital return.
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Legal fallout: Heller was arrested; SEC and U.S. Attorney’s Office filed parallel civil and criminal actions.
Legal Developments & Investor Impact
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Federal criminal charges include securities and wire fraud.
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Courts previously held Daryl F. Heller and Paramount in civil contempt for failing to comply with orders to transfer ATMs and related records. Authorities have imposed substantial fines and contempt sanctions.
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The FBI raided Paramount Management Group in late 2024 amid mounting legal pressure.
What Should Investors Do Now?
If you or someone you know invested in Prestige Investment Group, LLC or Paramount Management Group, LLC, especially in connection with ATM-based offerings or “Prestige Funds”:
Contact Goodman & Nekvasil, P.A. immediately. Their experienced securities litigation team can help evaluate your options, including potential recovery efforts, representation, and guidance on FINRA Arbitration.
Investor Alert: SEC Charges Daryl F. Heller and His Companies in Massive $770M ATM Ponzi Scheme
Call 800-500-4442 if you think that you have received unsuitable investment recommendations from your broker or financial adviser.
Prestige Investment Group, LLC, and Paramount Management Group, LLC and the Risks of Alternative Investments
Many investors are not fully aware of the problems and risks associated with illiquid, high risk, alternative investments when they purchase them. Prestige Investment Group, LLC and Paramount Management Group, LLC are alleged to be PONZI Schemes, but alternative investments generally come with higher risks even in the absence of outright fraud.
Investments are often riskier and more complicated than traditional investments. These funds are only suitable for high net worth, sophisticated investors.
Liquidity Issues and High Sales Commissions
Alternative investments can face several liquidity issues due to their unique characteristics and structure.
Another problem often associated with alternative investments is the high sales commissions brokers typically earn for selling them. Brokers have an obligation to make investment recommendations that are consistent with their clients risk tolerance, net worth, investment objectives and experience in the market.
Unfortunately, in many cases, the high sales commission may influence unsuitable investment recommendations.
Broker Due Diligence
Broker dealers are required to perform adequate due diligence on any investment they recommend and to ensure that all recommendations are suitable for the investor. Firms that fail to do so may be held responsible for any losses in a FINRA arbitration claim.
If you believe that your investments in Prestige Investment Group, LLC, and Paramount Management Group, LLC may have been unsuitable or otherwise improper for you, we would like to discuss the possibility of your retaining our firm to represent you in an arbitration action.
There is no charge for an evaluation of your case. We handle our cases on a contingency fee basis. If we don’t recover money for you, we charge no attorney’s fee.
Goodman & Nekvasil, P.A. has recovered more than $500 million on behalf of victimized investors. If you lost money in unsuitable investments and would like your case evaluated by a securities attorney, please contact us.
Some of the information in this blog post was obtained from the SEC and FINRA on 9/4/25. If you believe this information was reported incorrectly, please contact our firm: 1-800-500-4442