SEC Charges Pennsylvania Man in $400 Million Ponzi Scheme
From the desk of Jim Eccleston at ÍøÆسԹÏ
The Securities and Exchange Commission (SEC) has charged Daryl F. Heller of Pennsylvania, along with his companies Prestige Investment Group, LLC, and Paramount Management Group, LLC, for operating a Ponzi scheme that caused investor losses of roughly $400 million.
According to SEC.gov, the complaint alleges that from January 2017 through June 2024, Heller and Prestige raised more than $770 million from approximately 2,700 investors, many of them retail investors. The funds were supposed to be invested in ATMs operated by Paramount. According to the SEC, Heller misled investors into believing they were part of a successful nationwide ATM network that generated reliable income through transaction fees.
Instead, the complaint claims Heller inflated the size and profitability of the ATM network and paid investor distributions primarily with money from new investors and high-interest, short-term loans. The SEC further alleges that Heller misappropriated more than $185 million for personal use, including funding a beach house and other business ventures.
“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.”
According to SEC.gov, the complaint charges Heller, Prestige, and Paramount with violating antifraud provisions of the federal securities laws. The SEC seeks permanent injunctions, disgorgement of ill-gotten gains with prejudgment interest, civil penalties, 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 acknowledged the assistance of the U.S. Attorney’s Office, the FBI, and the Internal Revenue Service.
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Tags: eccleston, eccleston law, sec
