Silver Law Group, working with co-counsel, has brought a class action lawsuit on behalf of investors tied to what is alleged to be a $700 million Ponzi scheme involving the Prestige Funds and Paramount Management Group. The case was filed in the United States District Court for the Eastern District of Pennsylvania and seeks recovery for those who trusted these investments and suffered losses.
The class action lawsuit against Prestige Funds / Paramount Management Group alleges that executives, including Jerry Hostetter, Buck Joffrey, Randall Leaman, and David Zook raised more than $700 million between 2012 and 2024. Investors were told that their money would fund the purchase and operation of thousands of ATM machines across the United States. In reality, Prestige and Paramount owned fewer than 10,000 ATMs, with fewer than 1,000 machines operating. Thousands of others were sitting unused in warehouses, despite claims of a nationwide portfolio of roughly 38,000 units.
Court filings assert that the companies concealed shortfalls and that executives diverted investor funds for their own use. According to the complaint, these misrepresentations created a structure that could not support itself without a steady flow of new investor money.
The case places significant focus on Daryl Heller, majority owner and manager of Paramount Management Group. In December 2024, his home was searched by FBI agents, and two months later he filed for Chapter 11 bankruptcy, reporting liabilities estimated between $100 million and $500 million. His bankruptcy proceedings now involve disputes between Paramount and Prestige, as well as multiple claims from creditors and investors.
Heller and Leaman are accused of manipulating funds and shifting assets in ways designed to mask Paramount’s growing losses, while leaving investors in an increasingly vulnerable position.
The class action, filed as Batman Investments LLC v. Hostetter et al., describes how Prestige Funds raised capital on promises of reliable ATM-based income. Investors were told they were buying into a legitimate operation. Instead, they were placing money into a scheme that required new investments simply to cover prior obligations.
Key allegations outlined in the complaint include:
Silver Law Group is a securities and investment fraud law firm representing clients nationwide in cases involving Ponzi schemes, Pump and Dump schemes, and other types of securities fraud. The firm’s attorneys regularly handle class actions and complex investment disputes.
If you invested in the Prestige Funds or related entities such as the WF Velocity Funds, you have legal options. Joining the class action or pursuing other claims may allow you to seek compensation for your losses.
Silver Law Group offers free and confidential consultations to investors across the country. Cases like the Prestige Funds / Paramount Management Group Class Action lawsuit are handled on a contingency fee basis, meaning you do not pay unless recovery is made on your behalf. To discuss the fraudulent actions involving Prestige Funds or Paramount Management Group, and your involvement in a class action, contact Silver Law Group today.
