ATM King: Royally Screwed-Court Cases
ATM King: Royally Screwed
Court Cases Involving Heller & Associates
Table of Contents - Creditors Alleging Money Owed by Heller
Standard Commercial Banks
Other Major Lenders
Private Lenders / Associates / Government
Colby Auctions v. Golden Gate Investment Company
Case Summary
Background Information
Colby Auctions, located in Landisville, PA, is owned by Ryan Hess and was founded in 2018. The company conducts auctions and liquidations that feature online bidding.
March 15, 2024 - Colby Auctions loaned Golden Gate Investment Company, headed by Daryl Heller, $500,000. Golden Gate listed 56 ATMs as collateral for the loan.
June 2024 - Golden Gate defaulted on the loan.
Event Summary
August 30, 2024 - Colby Auctions filed an initial complaint in Lancaster County Courts.
October 16 2024 - Colby Auctions filed a request for Judgment against Heller and Golden Gate Investment Company for $500,000 at 16% interest ($291/day). The suit remains open.
Customers Bank v. Paramount Management
Case Summary
Background Information
In 2017, Blackford Holdings entered into an ATM Management Agreement with Paramount Management Group. Blackford committed to purchasing up to $77 million worth of ATMs. In exchange for every $1.04 million of ATMs purchased, Paramount would remit nearly $27k/month to Blackford for 84 months. See the Estate of Richard Welkwowitz v. Daryl Heller case for more details.
January 12, 2018 - Customers Bank, based out of Chester County, PA, extended a $50 million line of credit to Blackford Holdings, who owned several ATMs. The Bank would advance Blackford money at their request with a set repayment schedule.
June 1, 2024 - Paramount stopped making the monthly payments to Blackford.
Event Summary
July 26, 2024 - A Confession of Judgment was entered against Paramount for $5,914,530 plus daily interest of $1,445 per day since that date.
October 8, 2024 - Customers Bank filed Writs of Execution directing the Lancaster County Sheriff to start taking possession of Heller's money at various banks to satisfy the $5.9 million judgment.
December 6, 2024 - Customers Bank filed to intervene in the Prestige v. Paramount case in order to potentially receive any seized assets to fulfill the judgments against Heller. An "Intervenor" means that the Bank does not have a direct interest in the Heller suit, but it has an interest in the outcome.
January 13, 2025 - Judge Brown III grants the Bank "Intervenor" status. The suit remains open as only part of the judgment has been satisfied.
Deerfield Capital LLC v. Heller Capital Group
Case Summary
Background Information
Deerfield Capital, founded in 2021, is led by Eric Warfel. Not a lot is known about the company, but Warfel has a long history of success in Lancaster County. He was previously a Senior Vice President of Peoples Bank. This appears to be another private loan by Heller just before April monthly payments were due to Prestige investors.
April 11, 2024 - Heller took out a loan of $5.9 million plus an $800k financing fee at a rate of 17%.
October 2024 - Between April and October 2024, Heller failed to repay the loan, resulting in five Forbearance Agreements being drawn up. Heller defaulted on each one, resulting in increased penalties every time.
Event Summary
December 5, 2024 - Deerfield filed suit in Lancaster County court with a claim of $7.9 million against Heller as the result of the multiple defaulted agreements. The suit remains open.
Estate of Richard Welkowitz v. Daryl Heller
Case Summary
Background Information
Richard Welkowitz was the majority owner of Blackford Holdings, a company that owned and provided ATM services. Daryl Heller was the minority owner (5%). Welkowitz had his own questionable financial issues and committed suicide just outside of East Petersburg in 2019. This case was initiated by Carol Welkowitz, the Executor of her late husband's estate.
July 21, 2022 - Heller agreed to purchase the 95% Welkowitz stake in Blackford Holdings for $13.8 million. The repayment terms were simple: A lump sum of $3 million by the closing date of the purchase followed by 36 monthly payments of $300k. Heller would also be responsible for all debt that came with the purchase of Blackford.
November 28, 2022 - Heller couldn't come up with the initial money necessary, so a new purchase agreement was made: Closing payment would be split into two payments of $1.6 million at Closing and $1.4 million before January 2, 2023 (plus $35k for the courtesy of delaying the sale). Monthly payments of $300,000k would be made until the purchase was fully paid, initially projected for March 2025.
Event Summary
May 2024 - Heller began to miss monthly payments for the Purchase Agreement.
August 16, 2024 - Attorneys for the Welkowitz Estate filed a suit against Heller demanding the remainder of the Purchase Agreement balance of $3,208,396.
December 9, 2024 - The Welkowitz Estate filed a request for judgment against Heller. The suit remains open.
First National Bank v. Daryl Heller et al. (2 Cases)
Case Summary
Background Information
Daryl Heller, backed by his numerous LLCs, took out two loans in 2023 from First National, totaling $3.6 million. (January 2023 - $3 million; September 2023 - $600k) The terms of the loan were that monthly payments would be made and that the Bank could call the loan in as due at any time.
September 5, 2024 - First National put Heller on notice that they were demanding full repayment of the loans by this date.
Event Summary
September 10, 2024 - First National filed a Confession of Judgment against Heller and his backing companies for $2.45 million with a daily interest rate of $531 since the filing for the January 2023 loan.
December 9, 2024 - First National filed a second Confession of Judgment against Heller and his companies for $352,104 plus interest. The suit is still open.
Funders App LLC (Fundonatic) v. Paramount Management
Case Summary
Background Information
Daryl Heller, through his Paramount Management Group, committed future ATM earnings in exchange for quick cash to make the April 2024 Prestige investor payments. Fundonatic is a financial technology company specializing in merchant cash advance services based out of Miami Beach, Florida. They are licensed to do business in New York, which is where this case was filed.
How this was laid out: Fundonatic would give Heller $1.25 million immediately. Heller would set up a bank account that Fundonatic would debit for $156,000 each week until the loan was paid off. As in most cases, Heller defaulted on repayment within weeks by either closing the bank account, not funding it, or preventing the Plaintiff from accessing it.
April 1, 2024 - Paramount Management (PMG) promised $1,873,750 in future ATM earnings (Receivables) to Fundonatic in exchange for $1,250,000.
April 30, 2024 - By this date, PMG had only repaid approximately $552,000 before defaulting.
Event Summary
August 15, 2024 - Fundonatic filed for judgment against PMG and Heller.
October 30, 2024 - Judgment in favor of Fundonatic. They were awarded $1,455,674 plus daily interest.
LH Investors LLC v. H2 Ventures (Blackworth Live Fire Grill)
Case Summary
Background Information
H2 Ventures is a Daryl Heller-backed business that operates out of the same building as every other Heller Investment company (415 N. Prince St., Lancaster, PA, 17603). LH Investors own property at 48 N. Broad St., Lititz, PA, 17543 and leases two units to the Blackworth Live Fire Grill restaurant. The restaurant owners have defaulted on its leases, resulting in civil action.
August 2018 - H2 Ventures signed its initial lease for 48 N. Broad St. Unit 7 for a term of 10 years. The monthly rent was $10,500 ($126k/year), which would increase 2% every year thereafter.
January 2024 - H2 signed a second lease to expand into Unit 8. The amount of both leases resulted in a monthly rent of $16,747.97.
December 4, 2024 - LH Investors have alleged that the tenants are behind in payments amounting to $84,486. As a result, the landlord sent notice to the tenants that they were terminating their lease(s).
Event Summary
December 23, 2024 - LH Investors filed a judgment for ejectment against the tenants.
December 27, 2024 - LH Investors had their legal team request to have the county Sheriffs take possession of the property. The suit and the restaurant are still open.
Libertas Funding v. Heller & Paramount Management
Case Summary
Background Information
Daryl Heller committed future ATM earnings in exchange for quick cash through five (5) agreements with Libertas Funding, all within six months. The deal said that Libertas would give Heller over $10 million immediately. Heller would set up a bank account that Libertas would debit each week until the loan was paid off. As in every other Receivable case, Heller closed the bank account or took action that prevented the Plaintiffs from getting their regular payments. Out of the $10 million plus that Heller was given, he repaid approximately $2.5 million.
November 20, 2023 - Heller promised $3,423,750 in future ATM earnings (Receivables) to Libertas in exchange for $2,750,000.
February 27, 2024 - Heller promised $1,687,500 in future ATM earnings (Receivables) to Libertas in exchange for $1,250,000.
February 27, 2024 - That same day, Heller promised another $1,350,000 in future ATM earnings (Receivables) to Libertas in exchange for $1,000,000.
March 29, 2024 - Heller promised $4,679,508 in future ATM earnings (Receivables) to Libertas in exchange for $3,613,519.
November 20, 2023 - Heller promised $2,432,833 in future ATM earnings (Receivables) to Libertas in exchange for $1,878,636.
Event Summary
December 17, 2024 - Libertas filed for judgment against PMG and Heller for $11,222,596 plus daily interest since November 20, 2024. The case is still open.
Orrstown Bank v. Daryl & Charlene Heller (3 Cases)
Case Summary
Background Information
Orrstown Bank had loaned Daryl Heller and other backing individuals and companies over $6.5 million between December 2017 and September 2023. All of the loans have been defaulted on, resulting in civil action from Orrstown Bank.
December 11, 2017 - Daryl Heller, representing Heller Capital, borrowed $300,000.
July 22, 2020 - Daryl Heller and his wife Charlene took out a loan for $3,120,000 through the primary business name of Cash Ventures III. Also providing guarantees for the debt obligation was a new name to this scheme: J. Richard Haller of Leola. The bank note was secured by "all assets of the borrower" and 250 new ATM machines that would be located throughout New York and Connecticut.
September 21, 2023 - Daryl Heller, representing Cash Ventures III, took out another loan of $3,120,000, which was secured by another 250 new ATMs.
July 2024 -There were a number of events that triggered "Default" status of all three loans, the majority of them being for non-payment. The bank alleges that Heller and company stopped paying on the loans in July 2024. The bank also discovered that the Hellers had a federal tax lien of over $5 million filed against them in early 2024. Heller also refused to provide proof that the ATMs existed.
Event Summary
September 4, 2024 - Orrstown Bank filed a judgment against Heller Capital Group for $305k plus interest (from the 2017 loan).
October 2024 - A Forbearance Agreement was created in October 2024 between the bank and Heller to handle all three loan situations, which Heller and others defaulted on.
December 2, 2024 - Another judgment was filed against Heller et al., for $3.1 million (from the 2023 loan).
December 4, 2024 - Orrstown Bank filed an initial complaint against the Hellers for $1.3 million plus interest (from the 2020 loan). All suits are still open.
Pennsylvania v. Heller Capital
Case Summary
Background Information
The Commonwealth of Pennsylvania filed a tax lien against Heller Capital Group for unpaid quarterly employer withholding.
Event Summary
January 22, 2024 - The Commonwealth sought approximately $4700 in past due money from 2023.
April 9, 2024 - The lien was resolved with payment.
Prosperum Capital Partner (Arsenal) v. PowerCoin
Case Summary
Background Information
Daryl Heller, through his company PowerCoin LLC (which also does business as Margo), committed future ATM earnings (Receivables) in exchange for immediate access to cash. Prosperum, whose trade name is Arsenal Funding, provides quick access to cash in exchange for a large portion of future sales.
Here's how the loan would work: Arsenal Funding would give Heller $250,000 immediately. Heller would set up a bank account that Arsenal would debit for 5.13% of the ATMs' revenues until the loan was paid. Heller defaulted on repayment by either closing the bank account, not funding it, or preventing the Plaintiff from accessing it.
June 12, 2024 - PowerCoin (Heller) promised $374,750 in future ATM earnings (Receivables) to Arsenal in exchange for $250,000.
November 4, 2024 - Heller is accused of closing the account and only repaying $240,000 of the amount agreed upon.
Event Summary
January 14, 2025 - Arsenal filed for judgment against against PowerCoin and Heller for $181,567.
Reliance Platinum LLC v. Paramount Management
Case Summary
Background Information
Not much information exists about Reliance Platinum or its owner, Nechama Hassan. The company is based out of Miami, Florida and was founded in 2022. This appears to be a private financer that Heller sought out for quick cash. As a note - when a company promises repayment on a loan with future earnings from its assets, it's called a "Receivable". Paramount obtained two of these loans from Reliance within 15 months.
December 19, 2023 - Reliance Platinum purchased 2% of Paramount's future earnings (Receivables) for $3.5 million. The future earnings that Paramount would repay were contracted at $4,795,000. A total of $2,078,694 was repaid to Reliance by Paramount, leaving a balance owed of $2,716,305
March 11, 2024 - Paramount needed more cash in a short time, so in March 2024, Heller sold even more Receivables to Reliance Platinum. In this 2nd agreement, Reliance paid $2 million in exchange for $2.9 million of Paramount's future earnings. Paramount paid a total of $801,790 on the 2nd agreement, which left a balance of $2,098,210.
May 3, 2024 - The Parties created a Forbearance Agreement with Paramount resuming payments. Paramount defaulted on this agreement as well.
July 12, 2024 - A 2nd Forbearance Agreement was created which was subsequently defaulted.
Event Summary
August 20, 2024 - Reliance filed suit for $4.8 million against Paramount in Florida Circuit Court. The suit is still open.
Silverview Credit Partners v. Blackford ATMs
Case Summary
Background Information
Silverview Credit Parners is a financial firm that provides debt capital and operates in Delaware and New York. Heller owns Blackford ATMs after he agreed to purchase the company from the Estate of Richard Welkowitz.
December 22, 2023 - Silverview Credit Partners loaned a total of $23 million through two loans in August and December 2023. As of the filing, only $836k has been paid back.
Event Summary
September 11, 2024 - Silverview filed a suit in New York State Supreme Court in the against Blackford and Heller.
September 11, 2024 - The court found in favor of Silverview and ordered Blackford to pay damages of $28.5 million plus interest.
Square Funding v. Paramount Management
Case Summary
Background Information
Square Funding also functions under the name of Square Advance and is based out of Darien, Connecticut. The company was formed in April 2023 to provide working capital to numerous industries. As a note - when a company promises repayment on a loan with future earnings from its assets, it's called a "Receivable."
April 5, 2024 - Paramount Management Group sold $2,698,000 of its future earnings, known as "Receivables", to Square Funding for $2 million. Paramount was to start paying those Receivables on April 12, 2024 and promptly defaulted on its first payment.
June 3, 2024 - Both parties entered into a Settlement Agreement where Paramount would pay Square Funding $2,208,400. Only $65k of that was paid, triggering another default by Paramount. The default made the Settlement amount $2,785,895.
June 14, 2024 - Another Settlement Agreement was created in the amount of $2,635,895. Paramount paid a total of almost $404k before stopping any further payments. The total amount now allegedly due to Square Funding is $2,701,147 + daily interest since July 6, 2024.
Event Summary
July 9, 2024 - Square Funding filed a Summons for Response to a lawsuit in New York State Supreme Court in the amount of $2.7 million plus daily interest. The suit is still open.
Stoltzfus v. Golden Gate Investment Company
Case Summary
Background Information
This is another private loan that Heller took out under the name of Golden Gate Investment Company. In this case, it appears he has defaulted on a loan from Chad Stoltzfus, the 2nd-generation owner of EG Stoltzfus, a local construction company. The available court documents are limited, so details about this case have not been published yet.
Event Summary
December 20, 2024 - Stoltzfus, using the same attorneys as Todd Witmer and Colby Auctions, filed suit in Lancaster County court. The suit is still open.
Superior Group ATMs v. Paramount Management
Case Summary
Background Information
Superior Group ATMs is a company that specializes in ATM services in Michigan. It was founded in April 2024, seemingly for the sole purpose of getting into the ATM business with Daryl Heller. No ownership is known.
April 29, 2024 - Superior purchased 250 ATMs from Paramount for $2.6 million. Paramount would install and manage those ATMs and pay Superior $72,500 per month for 84 months.
May 30, 2024 - Paramount missed the very first payment due.
July 21, 2024 - Both Parties entered into a Settlement Agreement where Paramount would pay Superior $2.6 million by July 31, and $2,338 for each day past that.
Event Summary
August 6, 2024 - Superior Group filed a lawsuit against Paramount, but they didn't just ask for the amount owed. They requested triple the amount due to allegations of conspiracy to commit civil fraud between Heller and his cohorts at Paramount.
September 27, 2024 - Oakland County Circuit Court Judge Victoria Valentine ruled in favor of Superior Group, awarding them over $8.6 million.
Daryl Heller and his companies Heller Capital Group and Paramount Management must pay $6,017,500 plus daily interest;
Randall Leaman and Dennis Ream, officers of Paramount Management, were ordered to pay $2.6 million plus interest.
The 250 ATMs must be seized and awarded to the Plaintiffs.
Traditions Bank v. Paramount Management Group
Case Summary
Background Information
In 2018, Cash Ventures V and Paramount Management Group created an ATM management agreement. The Agreement stipulated that Cash Ventures would pay $3.9 million to Paramount to purchase and manage ATMs, in turn, Paramount would send back nearly $100,000 per month for 84 months (~$8.4 million in all).
April 6, 2020 - York Traditions Bank (now Traditions Bank), loaned Cash Ventures V, a Heller-owned company, $3.9 million. Cash Ventures V defaulted on approximately $1.8 million as a result of a failed ATM management agreement with Paramount, another Heller-owned company.
Event Summary
September 12, 2024 - Witmer's attorneys filed a lawsuit in Lancaster County court for $1.8 million.
January 10, 2025 - Judge Brown III grants the Bank Intervenor status in the Prestige v. Paramount case. The case is still open.
Univest Bank v. Daryl Heller
Case Summary
Background Information
Univest Bank dates back to 1876 and is based out of Souderton, PA. It provides banking services ranging from individuals to businesses and municipalities. Not a lot of free public information exists about this case.
Event Summary
September 4, 2024 - Univest filed a Complaint in Confession of Judgment against Heller on September 4, 2024. The case has since been transferred to Lancaster County due to Heller's personal and business addresses. The judgment was filed for $595k plus daily interest of $92. The case is still open.
USA (IRS) v. Daryl & Charlene Heller
Case Summary
Background Information
This is a federal tax lien for alleged unpaid tax liability by the Hellers in 2022.
Event Summary
March 25, 2024 - The IRS filed a tax lien against for $5,008,450.
Westwood Funding Solutions v. H2 Ventures (Blackworth)
Case Summary
Background Information
This is another case of Heller promising Prestige Funds investors' future earnings (Receivables) in exchange for quick cash. Interestingly, the Heller company used to back this loan is the same one that is involved in the Blackworth Live Fire and Grill restaurant eviction case in Lititz, PA.
This creditor, Westwood Funding Solutions, is based out of Fort Lauderdale, Florida and is licensed to conduct business in New York, the location of this suit. According to its website, Westwood provides rapid funding solutions in as little as five (5) hours.
The agreement was drawn up this way: Westwood would provide $100,000 immediately to Heller. In turn, H2 Ventures (Heller) would set up a bank account that Westwood could debit 10.45% of the ATMs' revenues until they got their money back, $149,000.
July 8, 2024 - H2 Ventures (Heller) promised $149,000 in future ATM earnings (Receivables) to Westwood in exchange for $100,000.
November 21, 2024 - Approximately $76,120 of the Receivables had been paid before Heller prevented Westwood from accessing the shared account, triggering a default.
Event Summary
November 25, 2024 - Westwood filed for judgment against H2 Ventures and Heller.
January 15, 2025 - Judgment in favor of Plaintiff. They were awarded $96,439 .
Witmer v. Golden Gate Investment Company
Case Summary
Background Information
Todd Witmer is CEO of The Witmer Group in Mount Joy, PA. The company provides restoration, waterproofing, and other construction-related services.
January 30, 2024 - Between this date and February 20, Golden Gate Investment Company, owned by Daryl Heller, took out a loan of $1 million from Witmer at a rate of 17%. The interesting thing about this loan was that Witmer could call it in for full repayment any time he wanted after July 31, 2024. Listed as collateral were 82 ATMs.
August 5, 2024 - Witmer called in the loan and demanded full repayment by this date in the amount of $1.1 million. No payment has been recorded to this date.
Event Summary
August 30, 2024 - Witmer's attorneys filed a lawsuit in Lancaster County court for $1.1 million plus $520/day interest.
October 16, 2024 - Witmer's legal team filed a request for a judgment against Golden Gate and Heller for $1.1 million plus interest. The case is still open.