Silver Law Group And Co-Counsel File $700 Million Class Action Lawsuit Against Prestige And Paramount Execs In ATM Ponzi Scheme

Silver Law Group, along with co-counsel, filed a class action lawsuit against Jerry Hostetter, Buck Joffrey, Randall Leaman, and David Zook on behalf of investors to recover losses in what the Plaintiff alleges was a “$700,000,000 Ponzi scheme perpetrated by and through a series of investment funds, called the ‘Prestige Fund(s),’ together with Paramount Management Group, LLC.”

The class action, filed in United States District Court for the Eastern District of Pennsylvania, alleges that the Defendants, along with Daryl Heller, served as executives for, managed, and raised capital for a Lancaster Pennsylvania-based company—Prestige—that, together with Paramount, claimed to manage a portfolio of approximately 38,000 ATMs when in fact the company owned/managed fewer than 10,000, leading to massive cash shortfalls.

Click here to view the Complaint.

Daryl Heller, Paramount Executive At The Center Of Prestige/Paramount Debacle, Declared Bankruptcy In February 2025

In December 2024, Heller’s home was raided by FBI agents and Heller filed for Chapter 11 bankruptcy in February 2025, estimating his liabilities to be between $100 million and $500 million.

Heller, the majority owner and manager of Paramount Management Group, LLC, is at the center of contentious litigation between Paramount and Prestige, as well as a variety of claims within his bankruptcy proceeding.

The Class Action Alleges Serious Misconduct By Defendants Leading To Investor Losses

The class action, titled Batman Investments LLC v. Hostetter et al., alleges Defendants violated Pennsylvania law and engaged in other misconduct, including:

• “Between 2012 and 2024, the Prestige Funds raised over $700,000,000 from investors who were misled into believing that they were purchasing interests in an entity that would procure and mange ATM machines. In reality, these unwitting investors were purchasing interests in a Ponzi scheme . . .”
• “[T]he Funds were not purchasing anywhere close to the number of ATMs that investors’ capital permitted.”
• “The Prestige Funds and Paramount have revealed in court filings that the Prestige Funds owned fewer than 10,000 ATMs, of which fewer than 1,000 were in operation, with thousands of ATMs sitting uninstalled in warehouses.”
• “Heller and Leaman played ‘shell games’ to cover Paramount’s losses and Defendants misappropriated investor funds for their own benefit.”

Did You Lose Money Investing In The Prestige Funds Or WF Velocity Funds?

Silver Law Group is a national securities and investment fraud law firm. Our partners routinely handle class actions and other cases involving Ponzi schemes, investment fraud and financial advisor misconduct. Learn more about us at securitiesfraudattorneys.com.

Call Silver Law Group toll free at (800) 975-4345, email ssilver@silverlaw.com, or visit us at www.securitiesfraudattorneys.com for a free and confidential consultation. Most cases are handled on a contingency fee basis, meaning you won’t owe us any money unless and until we recover for you. Your consultation is also free and confidential.