Daryl F. Heller; Prestige Investment Group, LLC; Paramount Management Group, LLC
U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 26387 /September 3, 2025
Securities and Exchange Commission v. Daryl F. Heller, Paramount Management Group, LLC, and Prestige Investment Group, LLC, No. 25-cv-5036 (E.D. Pa. filed Sept. 3, 2025)
SEC Charges Pennsylvania Resident and His Companies with $770 Million Ponzi Scheme
The Securities and Exchange Commission today charged Daryl F. Heller of Pennsylvania and his companies, Prestige Investment Group, LLC and Paramount Management Group, LLC, with operating a multi-year Ponzi scheme that resulted in investor losses of approximately $400 million.
According to the complaint, from January 2017 through June 2024, Heller and Prestige raised more than $770 million from approximately 2,700 investors, many of whom are retail investors, to invest in ATMs operated by Paramount. The complaint alleges that Heller used his control of Prestige and Paramount to create the false impression that they were running a successful, nationwide ATM network and paying investors fixed monthly distributions from income earned from ATM transaction fees and related charges. In reality, as alleged, the defendants misrepresented the size and profitability of the ATM network and paid distributions to investors primarily using money from new investments and high-interest, short-term loans. Heller also misappropriated more than $185 million of investor funds for his own benefit, including for a beach house and his other businesses, according to the complaint.
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 Section 17(a) of the Securities Act 1933 and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder and seeks permanent injunctions, disgorgement of ill-gotten gains with prejudgment interest, and civil penalties against the defendants and a conduct-based injunction and officer and director bar against Heller.
In a parallel action, the U.S. Attorney’s Office for the Eastern District of Pennsylvania announced criminal charges against Heller. The SEC appreciates the assistance of the U.S. Attorney’s Office for the Eastern District of Pennsylvania, the FBI, and the Internal Revenue Service.
The SEC’s ongoing investigation is being conducted by Suzanne C. Abt, Kasama Star, and Jacquelyn King of the Philadelphia Regional Office, under the supervision of Julia C. Green, Brian R. Higgins, and Scott A. Thompson. John V. Donnelly III, also of the Philadelphia Regional Office, will lead the litigation under the supervision of Gregory R. Bockin.