SEC Charges Pennsylvania Man in $400 Million Ponzi Scheme

Posted on October 3rd, 2025 at 2:10 PM
SEC Charges Pennsylvania Man in $400 Million Ponzi Scheme

From the desk of Jim Eccleston at Eccleston Law

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.

 

Eccleston Law LLC represents investors and financial advisors nationwide in securities, employment, transition, regulatory, and disciplinary matters.

Tags: eccleston, eccleston law, sec

Return to Archive

TESTIMONIALS

Previous
Next

If the regulators are after you, and are trying to make a case against you, and you are going to contest their allegations against you, make sure you have the best securities industry defense lawyers, Eccleston Law Firm. My case was spun into a combination of penalties including fines, cash settlements, CE courses and suspension. They were the best I have seen in action. When all was said and done, they had done their magic, my situation was negotiated and settled with a simple "letter of caution" and a case closed without action. It is the most important legal business decision you will ever make, make it Eccleston Law.

Rick R.

LATEST NEWS AND ARTICLES

October 23, 2025
Retail Access to Private Markets Raises Investor Protection and Regulatory Concerns

Robinhood Markets recently registered its first alternative investment vehicle, Robinhood Ventures Fund I, with the Securities and Exchange Commission (SEC).

October 21, 2025
Judge Denies Merrill Lynch's TRO in Advisor Transition

A federal judge has rejected Merrill Lynch’s request for a temporary restraining order (TRO) against a group of former financial advisors who left the firm to launch their own independent practice, OpenArc Corporate Advisory, under Dynasty Financial Partners’ platform with custody at Charles Schwab.

October 20, 2025
FINRA Accuses Former MML Broker of Cheating on SIE Exam

Regulators have accused a former MML Investors Services-affiliated broker of cheating on the Securities Industry Essentials (SIE) exam, according to a recent Financial Industry Regulatory Authority (FINRA) enforcement complaint.