The Securities and Exchange Commission (SEC) has charged Pennsylvania resident Daryl F. Heller and his companies, Prestige Investment Group, LLC and Paramount Management Group, LLC, for orchestrating a massive Ponzi scheme that raised more than $770 million from thousands of investors and resulted in losses of approximately $400 million.
According to the SEC’s complaint, filed in the U.S. District Court for the Eastern District of Pennsylvania, the scheme spanned from January 2017 through June 2024 and involved about 2,700 investors, many of them retail participants. Heller and his entities promoted what appeared to be a nationwide ATM investment program, promising fixed monthly distributions supposedly generated from transaction fees.
False Promises and Misappropriated Funds
The SEC alleges that Heller and his companies created a false impression of profitability and scale, claiming Paramount operated a large, successful ATM network. Instead, only a fraction of the funds raised were actually used to purchase ATMs. Investor payouts primarily came from new investments and short-term, high-interest loans, the hallmarks of a Ponzi scheme.
The complaint also details that Heller personally misappropriated more than $185 million, which he allegedly used to fund other businesses and purchase personal assets, including a beach house.
“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,” said Scott A. Thompson, Associate Director of Enforcement in the SEC’s Philadelphia Regional Office. “The SEC remains committed to diligently pursuing those who prey on hard-working investors and holding wrongdoers accountable.”
Legal Action and Parallel Criminal Case
The SEC’s complaint charges Heller, Prestige, and Paramount with violations of the antifraud provisions of federal securities laws. The agency is seeking:
- Permanent injunctions
- Disgorgement of ill-gotten gains with interest
- Civil penalties
- A conduct-based injunction
- An officer and director bar against Heller
In a parallel action, the U.S. Attorney’s Office for the Eastern District of Pennsylvania has filed criminal charges against Heller. The investigation benefited from assistance provided by the FBI and the Internal Revenue Service (IRS).
Investor Fallout and Broader Implications
This case underscores the risks retail investors face when drawn into high-yield opportunities that appear legitimate but rely on opaque structures. Ponzi schemes often thrive on community trust and recurring cash flows, in this case via the ATM sector, which investors may have perceived as stable and cash-generative.
The SEC’s swift coordination with federal prosecutors highlights regulators’ ongoing focus on protecting retail investors, particularly as fraudsters adapt old schemes to new industries.
Full details are available in the SEC’s official press release: SEC Press Release 2025-111.
