brokerwatch

Prestige Funds and WF Velocity Funds attracted investments by offering private-placement securities under Regulation D, promising lucrative returns from a network of ATMs. Investors were allegedly told their funds would be used to purchase and operate these machines, which would generate income through transaction fees. These securities were not publicly traded and were only available to sophisticated or accredited investors.

Paramount Management Group, another company owned by Daryl Heller, was contracted to manage the ATMs under “ATM Management Agreements.” It was expected to collect revenue from the ATMs and make regular payments to the Funds, which would then distribute profits to investors. The close relationship between Prestige and Paramount raised concerns of self-dealing and collusion.

In reality, the businesses reportedly operated as a Ponzi scheme. Instead of using funds to purchase and manage ATMs, new investor money was alleged to have been used to pay earlier investors. Evidence later emerged that many ATMs were not in use — thousands were stored in a warehouse — and Paramount admitted it lacked information on thousands of units it claimed to manage.

In December 2024, the FBI raided Paramount Management Group, and Heller invoked his Fifth Amendment right during a court hearing, suggesting potential criminal liability. Subsequently, Paramount admitted to not complying with court orders to provide an inventory of ATMs and transfer ownership rights to investors, further indicating fraudulent activity.

Heller and his companies are also defendants in multiple lawsuits filed by creditors and investors, alleging fraud, breach of contract, and default on loans totaling millions of dollars. For instance, in April 2024, Heller promised future ATM earnings to Fundonatic in exchange for $1.25 million but defaulted on repayments. 

Numerous individuals allegedly promoted and syndicated investments in the various “Prestige Funds” and “WF Velocity Funds.” These individuals include Dave Zook of the Real Asset Investor, Buck Joffrey of the Wealth Formula Investor Club, Daryl Heller, Jerry Hostetter, and others. Most or all of these individuals were also managers or principals of Paramount and/or Prestige.

Zook, Joffrey, and others used word-of-mouth and written solicitation materials to convince investors to trust their hard-earned money to Paramount/Prestige. Peiffer Wolf is investigating claims against these individuals based on their potential involvement in soliciting investors into a Ponzi scheme and/or helping to facilitate that scheme.

Peiffer Wolf is currently investigating claims against Paramount Management Group, Prestige Investment Group, and its associated managers and promoters, including Daryl Heller, Dave Zook, Buck Joffrey, Jerry Hostetter, and others. 

If you’ve invested through Paramount or Prestige, Contact Us today by filling out a Contact Form or by calling 585-310-5140 to schedule a FREE Case Evaluation.