$402 Million Investment Fraud: Pennsylvania Man Pleads Guilty

A Pennsylvania man has pleaded guilty to securities fraud after allegedly operating a massive investment scheme that left investors with approximately $402 million in unpaid principal.

The U.S. Attorney’s Office for the Eastern District of Pennsylvania said on August 10 that Daryl F. Heller, 56, admitted to defrauding investors through a network of companies involved in ATM and cryptocurrency teller machine (BTM) operations.

From January 2017 to December 2024, Heller and others solicited approximately $770 million from investors in the Prestige and WF Velocity ATM Funds. Investors were told their money would be used to purchase and operate ATMs and BTMs and that they would receive monthly payments generated from the machines.

According to court filings, a substantial portion of the funds was instead used to pay earlier investors, cover business debts and fund Heller’s personal expenses. Authorities also found that thousands of ATMs and BTMs supposedly purchased for investors either did not exist or were not operating.

Heller allegedly concealed the scheme by creating fraudulent records that overstated the number of machines in the network and the revenue they generated. The records were used to attract new investors and convince existing investors that their funds were being used as promised.

Monthly payments stopped in April 2024 after new investor funds declined. Despite continued promises to repay investors, no further payments were made. Paramount ceased operations in December 2024, leaving investors with approximately $402 million in unpaid principal.

Heller is scheduled to be sentenced on December 1 and faces up to 20 years in prison, three years of supervised release and a fine of up to $5 million, along with potential restitution and forfeiture.

The FBI investigated the case. The U.S. Securities and Exchange Commission (SEC) also filed parallel charges against Heller in September 2025.