Darryl F. Heller, a 55-year-old businessman from Lititz, Pennsylvania, was arrested Wednesday morning in connection with an alleged $770 million investment fraud scheme that defrauded approximately 2,700 investors, primarily in Lancaster County.
The U.S. Attorney for the Eastern District of Pennsylvania, David Metcalf, announced that Heller has been indicted on one count of securities fraud and four counts of wire fraud. If convicted, he faces up to 100 years in prison.
Authorities allege that Heller used automated teller machines (ATMs) as the basis for his fraudulent scheme, promising investors returns of up to 25% based on the revenue the machines would supposedly generate. However, many of the ATMs either didn’t exist, were outdated or non-functional, or were simply stored in warehouses and never operated.
According to prosecutors, the funds raised from new investors were not used to purchase ATMs as promised. Instead, they were allegedly diverted to pay earlier investors, cover Heller’s personal expenses, and pay off business debts from various companies he owned. Officials say this behavior was consistent with a Ponzi-style operation.
From January 2017 to December 2024, Heller reportedly solicited around $770 million through two investment groups: the Prestige ATM Funds and the WF Velocity ATM Funds. Despite collecting large sums from thousands of individuals, investors stopped receiving monthly payouts in April 2024 when new funds dried up. Paramount Management Group, the company at the center of the scheme, shut down by the end of 2024, leaving investors with an estimated $402 million in unpaid principal.
Heller controlled and was the majority owner of several businesses central to the fraud, including Paramount Management Group, LLC, Heller Capital Group LLC, and Prestige Investment Group, LLC. Prestige also oversaw the operations of dozens of subsidiary entities involved in managing the purported ATM investments.
The indictment claims that to keep the scheme going and conceal its true nature, Heller created fraudulent records that grossly misrepresented both the number of ATMs in operation and the revenue they were generating.
Even after investor payouts stopped in April 2024, Heller allegedly continued to assure clients that payments and buyouts were forthcoming until at least December 2024.
Authorities say this case highlights one of the largest financial frauds in recent Pennsylvania history. U.S. Attorney Metcalf called it a massive deception, stating that Heller “piled lie upon lie” to mislead victims and steal their life savings. FBI Special Agent Wayne A. Jacobs emphasized the importance of inter-agency cooperation in uncovering the complex layers of the scheme, involving the FBI, the SEC, and local partners.
Heller remains in custody as the legal process moves forward.
