PHILADELPHIA — A federal grand jury has indicted Daryl F. Heller, a 56-year-old businessman from Lititz, Pennsylvania, for operating a massive Ponzi scheme that defrauded investors out of approximately $402 million.
U.S. Attorney David Metcalf announced the charges Wednesday, stating that Heller faces one count of securities fraud and four counts of wire fraud. Additionally, the U.S. Securities and Exchange Commission (SEC) has filed civil charges, accusing him of violating antifraud provisions under the Securities Exchange Act of 1934.
ATM Investment Scheme Uncovered
According to the federal indictment, Heller ran the scheme through a network of companies he controlled, including Paramount Management Group, Heller Capital Group, and Prestige Investment Group. The core of the scheme involved investments in so-called ATM funds, under the names Prestige ATM Funds and WF Velocity ATM Funds.
From 2017 to 2024, Heller raised about $770 million from investors, promising that the funds would be used to purchase and operate ATMs through Paramount. Investors were led to believe they would receive fixed monthly returns from ATM revenues.
However, authorities allege that much of the money was never used to buy ATMs. Instead, Heller used funds from new investors to pay earlier ones—a classic Ponzi scheme tactic. A significant portion was also funneled toward Heller’s personal expenses and debts tied to his other businesses.
Fabricated Records, Fake Revenues
The indictment says Heller created fraudulent records that vastly inflated the number of ATMs in operation and their revenue generation. These documents were used to reassure existing investors and lure new ones.
By April 2024, payments to investors ceased when the flow of new funds dried up. Despite assurances from Heller that payments would resume, Paramount shut down by December 2024, leaving investors with over $400 million in unpaid principal.
Federal Charges and Possible Sentence
If convicted, Heller faces up to 100 years in federal prison. The case is being prosecuted by Assistant U.S. Attorneys Francis Weber and J. Andrew Jenemann.
The FBI Philadelphia Field Office led the investigation, with support from the Lancaster County DA, local police departments, and the SEC.
Authorities Speak Out
“This is one of the largest fraud cases in the region’s history,” said Metcalf. “Heller allegedly built a house of cards on deception, robbing thousands of people of their hard-earned money.”
FBI Special Agent in Charge Wayne Jacobs highlighted the importance of inter-agency cooperation in uncovering the scheme: “This case shows how collaboration between the FBI, SEC, and local authorities can expose large-scale financial fraud.”
