by T. GormanPosted on Posted in SECActions

 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).

 

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by T. GormanPosted on Posted in SECActions

Only one new enforcement action was filed last week.  It was based on an offering fraud.  Th

Be careful this week,  be safe.

SEC Enforcement – Filed and Settled Actions

Statistics:  Last week the Commission initiated only one new case civil enforcement actions including the seven new cases cited above. Each new article is highlighted below.

Offering fraud:  SEC v. Dar,  Civil Action No. 1.25-cv-12387 is an action which names as defendants: Faraz Dar and his firm, Horizon Platinum LLC.  Mr. Dar resides in Istanbul, Turkey and is the owner of Horizon. Horizon, based in Massachusetts. Over a four-year period, beginning in July 2019, Defendants raised about $30 million from investors in Horizon and related entities.  There were about 30 investors. Investor funds were supposed to be put into the firm for its operations. In fact, most of the money was not invested as promised which was to have a luxury car exporting business.  Indeed, the firm never obtained the proper papers to export the vehicles. In May 2023, Defendant Dar stopped making payments to investors.  Currently he owes investors at least $2.5 million. Nevertheless, its website claims to have sold about 1,500 vehicles. It also represented that the firm had 500 “happy customers.”  The complaint alleges violations of Securities Act Section 17(a) Exchange Act Section 10(b) and Rule 10b-5.  See  Lit. Rel. No. 26386 (August 29, 2025).

Other Regulatory Actions  

BaFin (Federal Financial Supervisory Authority) 

Banking risk:  Nikolas Speer, Chief Executive Director of Banking Supervision, was interviewed on the topic of Banking supervision and risk management on August 25, by the Federal Financial Supervision Authority or BaFin. The focus of the interview centered on the notion that risk management had to center not just on the institution but the entire system.

Hong Kong

 Virtual trading platforms:   The Securities and Futures Commission of Hong Kong published a list of virtual asset trading platforms on August 29, 2025.  The regulator also cautioned investors only to deal with registered platforms.

 Singapore

 Liquidity risk:  The Monetary Authority of Singapore published a release in consultation with the UK Energy Transition on its on-going relation with the UK Energy Transition and Sustainable Infrastructure Investments in Southeast Asia. The release is dated July 14, 2025.

 

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