Prestige Funds Ponzi Investigation | FBI Raids Paramount Management Group

Prestige Funds Ponzi Investigation | FBI Raids Paramount Management Group

Prestige Investment Group, through a series of private Regulation D offerings known as Prestige Funds, raised hundreds of millions from  investors. These funds promised double-digit returns from a nationwide ATM surcharge revenue program, managed by their affiliate Paramount Management Group.

Now, lawsuits, court orders, and an FBI raid have revealed disturbing allegations: the ATM investment program may have been a Ponzi scheme, paying old investors with new investor money, while inflating the number of ATMs in service.

If you purchased Prestige Funds Reg D offerings, you could be at risk of losing your investment — and FINRA arbitration may be a way to recover funds.

Call 800-500-4442 if you think that you have received unsuitable investment recommendations from your adviser.

A current client of Goodman & Nekvasil, P.A. was marketed one of these investments by a broker registered with a FINRA associated broker dealer.    If you purchased this investment from a registered broker/adviser you may be able to recover losses by filing a FINRA arbitration claim.

Prestige Funds Reg D Offerings:

• Prestige Fund A II, LLC

• PRESTIGE FUND A IV, LLC

• Prestige Fund A IX, LLC

• Prestige Fund A V, LLC

• Prestige Fund A VI, LLC

• Prestige Fund A VII, LLC

• Prestige Fund A, LLC

• Prestige Fund B BTM I, LLC

• Prestige Fund B II, LLC

• Prestige Fund B IV, LLC

• PRESTIGE FUND B V, LLC

• Prestige Fund B VI, LLC

• Prestige Fund B VII, LLC

• Prestige Fund B, LLC

• Prestige Fund D BTM I, LLC

• Prestige Fund D II, LLC

• Prestige Fund D III, LLC

• Prestige Fund D IV, LLC

• PRESTIGE FUND D V, LLC

• Prestige Fund D VI, LLC

• Prestige Fund D, LLC

• Prestige Fund E I, LLC

Private Placements Are Risky Investments

Many investors are not fully aware of the problems and risks associated with illiquid, high risk, alternative investments when they purchase them.  

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 Funds 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 $400 million on behalf of victimized investors. If you lost money on investments 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 8/11/25. If you believe this information was reported incorrectly, please contact our firm: 1-800-500-4442