A Lancaster County man, Daryl F. Heller, is facing federal charges for allegedly running a Ponzi scheme involving approximately $770 million. According to the U.S. Justice Department, Heller, 55, from Lititz, Pennsylvania, was arrested and charged with securities fraud and wire fraud. The scheme reportedly resulted in investor losses of about $402 million.
Heller controlled several companies, including Paramount Management Group, which was supposed to purchase and operate ATMs. Instead, he allegedly used new investor funds to pay returns to earlier investors, a hallmark of a Ponzi scheme. The indictment states that Heller misrepresented the number and profitability of ATMs, using falsified records to deceive investors.
The Securities and Exchange Commission (SEC) has also charged Heller and his companies, alleging that he misappropriated over $185 million for personal use, including purchasing a beach house. The SEC complaint seeks permanent injunctions and penalties against Heller.
If convicted, Heller faces up to 100 years in prison. The case is being prosecuted by the U.S. Attorney’s Office for the Eastern District of Pennsylvania, with assistance from the FBI and other agencies. The investigation highlights the collaborative effort between federal, state, and local authorities to uncover the full scope of the alleged fraud.