
WASHINGTON, D.C. — A businessman from Pennsylvania is embroiled in one of the most significant Ponzi schemes in recent history, following the announcement of charges by the Securities and Exchange Commission (SEC) against Daryl F. Heller and his companies for defrauding investors of hundreds of millions of dollars.
The SEC claims that Heller and his firms—Prestige Investment Group, LLC and Paramount Management Group, LLC—reportedly raised over $770 million from approximately 2,700 investors between January 2017 and June 2024. Many of these investors were ordinary retail clients who were misled into believing their investments were supporting a lucrative nationwide ATM network. They were assured of consistent monthly returns supposedly derived from ATM fees.
However, the SEC contends that the operation was, in fact, a meticulously planned Ponzi scheme.
Instead of utilizing investor funds to buy and manage ATMs, Heller is accused of using the money from new investors to pay off existing clients, along with high-interest, short-term loans to maintain the facade of profitability. Alarmingly, it is alleged that Heller misappropriated over $185 million for personal expenses, including extravagant purchases like a beach house and financing unrelated business endeavors.
“Heller allegedly exploited his connections to his community and deceived retail investors into thinking the ATM investments were safe and reliable,” said Scott A. Thompson, Associate Director of Enforcement in the SEC’s Philadelphia office. “The SEC remains committed to diligently pursuing those who prey on hard-working investors and holding wrongdoers accountable.”
The SEC has initiated a civil lawsuit in the U.S. District Court for the Eastern District of Pennsylvania, accusing Heller and his businesses of breaching federal securities regulations. The agency is pursuing permanent injunctions, recovery of illicit profits, civil fines, and a lifetime ban from serving as an officer or director against Heller.
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