A Multimillion Dollar Ponzi Scheme Tied to ATMs
It is often difficult to believe the number of people who are convinced to invest in Ponzi schemes. Over the years those schemes have received huge and at times seemingly endless amounts of publicity. Despite mounds of publicity, however, people continue to be taken in by the next Ponzi scheme to come down the road. The Commission’s most recent case in this area is a good example. There investors put millions of dollars into what was labeled as a string of ATM or automatic tells machines supposedly owned by this one investor. In fact, 2,700 people invested this business over several years. SEC v. Paramount Management Group, LLC, Civil Action No. 5:25-cv-05038 (E.D. Pa. Filed Sept. 3, 2025).
Named as defendants in this action are: Daryl E. Heller, Paramount Management Group, LLC and Prestige Investment Group, LLC. Mr. Heller is the founder and chairman of the board of directors of Paramount as well as Heller Capital Group LLC which is the majority owner of Paramount and Prestige. Defendant Paramount Management LLC is a Pennsylvania firm. Defendant Prestige Investor Group, is an LLC based in Pennsylvania.
Beginning in 2017, and continuing until June 2024, Defendants raised funds from over 2,700 investors who were convinced to purchase interests in what were effectively Ponzi schemes. Defendant Heller and his team convinced over 1,700 investors to purchase interests in what was supposed to be a chain of automatic teller machines or ATMs.
The sales pitch focused on telling investors about what they called their “ATM Funds,” supposedly a chain of automatic teller machines. Investors were told there were at least 26 investment funds which threw off substantial amounts of money. From 2017 through 2024 Defendants were able to operate the chain as if it threw off millions of dollars. In addition, Defendant Heller misappropriated about $185 million. The complaint alleges violations of Securities Act Section 17(a) and Exchange Act Section 10(b) and Rule 10b-5. A parallel criminal action was filed by the U.S. Attorney’s Office for the Eastern District of Pennsylvania. See Lit. Rel. No. 26387 (September 3, 2025).