Prestige Investment Group ATM Network Lawsuit Investigation

Pennsylvania-based Prestige Investment Group, formed in 2011 by Daryl Heller and Jerry Hostetter, includes 25 different ATM investment funds. The investments were pitched as an opportunity for investors to purchase ATMs and ATM networks, and then collect on surcharge income generated from those ATMs, according to LancasterOnline. These ATM units, or tranches, were sold in various funds such as “Prestige Fund A” or “Prestige Fund D IV.” A group called Paramount Management, which is also owned by Daryl Heller, operates the ATMs.   

LancasterOnline details how for years, investors were attracted to double-digit rates of return and supposed tax benefits. However, this past April 2024, the day before monthly payouts were due, investors were told they actually wouldn’t be getting their payment until June, and that the company was instead switching to quarterly payments.   

Then, on August 23, 2024, the 25 ATM funds filed a lawsuit against Daryl Heller’s Paramount Group, claiming that $65 million in payments was missing, as reported by LancasterOnline. Heller said he would “buy out” investors to settle the lawsuit, but so far, investors say they haven’t seen a penny, and the buyout dates keep getting delayed. Following emails from Heller to investors about the delayed buyouts, some investors took to Reddit, concerned that they were being scammed. 

Some investors claim that staff from UniBank in Washington steered them into a Prestige ATM investment, asking them to take out exorbitant loans to finance the investment.   

Other investors told LancasterOnline how they were convinced to invest in an ATM fund after attending presentations or seminars hosted by Dave Zook and others, or after speaking with individuals promoting the investment. Several investors interviewed by LancasterOnline describe how they were convinced, explaining that “a deep dive into the numbers was less important to them than knowing the people pitching the investment and the fact that it had a track record of delivering on its promised payouts.” 

Gibbs Law Group 

Gibbs Law Group’s financial fraud and securities lawyers have more than two decades of experience prosecuting fraud. The firm has successfully litigated against some of the largest companies in the United States, and has recovered more than a billion dollars on clients’ behalf.  

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Silver Law Group 

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The firm is led by Scott Silver, a former Wall Street defense attorney who has been representing customers in securities and investment fraud cases since 2002. Scott is admitted to practice in New York and Florida and the firm’s FINRA arbitration attorneys represent investors nationwide.