ATM King: Royally Screwed

UPDATE PAGE

January 26, 2025 Update - Heller Plays Victim, Another Company Shut Down

Prestige Investors v. Paramount Case

In the latest twist, Daryl Heller has released a public statement addressing allegations tied to his phony ATM investment empire. Issued through his PR firm, the statement attempts to counter claims of fraud and mismanagement, but instead reads more like an elaborate blame game than a heartfelt defense.

Page/Case Updates

• New case added! Musser Properties v. Golden Gate Investment Company - Suit filed by a local private lender, limited information available.

• New case added! Steward Capital v. Golden Gate & Paramount - 2 loans for over $5 million defaulted on, leading to Heller's Golden Gate Investment Company being put into Receivership!

Official Heller statement. Click to open the full statement in a new tab.

“It is no secret that I am the subject of an ongoing federal investigation,” Heller begins, immediately reminding readers of the weight of the accusations without actually addressing them. Citing his attorneys’ advice, Heller says he can’t “speak fully about these matters,” yet uses the opportunity to point fingers at others, particularly the Fund Managers involved in his ventures. According to Heller, these managers “received millions of dollars” and played key roles in decision-making, including soliciting investors for the funds.

Heller also takes aim at specific allegations, including claims that the Funds should own 38,000 ATMs. He calls the figure “disingenuous and misleading,” but offers little hard evidence to support his defense. He also denies accusations that he diverted investor money to his own company, Heller Capital, insisting the money was used for “legitimate payroll services, health insurance premiums, and 401(k) contributions for Paramount employees.”

While Heller expresses frustration over what he calls a “false narrative” being spread to the press and investors, he stops short of offering substantive explanations for the allegations. Instead, he leans heavily on appeals to loyalty, asking those who “know and trust” him to have patience while he navigates the investigation. “It is painful to see the false narrative being promoted,” Heller says, adding that many investors are his friends and members of his community. For now, Heller promises to “fully defend” himself against the allegations, just not yet.

Updated spreadsheet of known Heller loans with defaults.

January 21, 2025 Update - Receivables and Defaults

Prestige Investors v. Paramount Case

After the dust settled from the 12/30/24 contempt testimony, Heller was found in contempt and given a monetary fine of approximately $2 million. Not that the fine means anything, it won't get paid. Traditions Bank and Customers Bank were allowed to intervene in the case, meaning that they'll be involved in the asset seizure process. A thorough review of the January events will be covered in a future episode.

Key Research & Discoveries

A reader's tip led to a treasure trove of Prestige investor earnings that were promised to at least six (6) different companies who provide quick access to cash. For those who are still getting caught up on the case, let's briefly discuss the term receivables. When used in this scenario, receivables are the future earnings on ATM transaction fees. These receivables should have been paid to the Prestige investors as contracted, but they were committed/promised to these lenders so Heller could get some cash in hand.

Simply put: Heller pawned investor's future earnings for his own use (allegedly). He wasn't authorized to do so, and his investors didn't know he was doing it. But Heller wasn't just screwing investors, he was screwing all of these companies because as we now know, fewer than 1,000 machines were wholly-owned and generating any kind of regular money stream. There wasn't enough income to pay these loans, and even the scummiest of loan sharks wouldn't give money based on the real numbers. That means Heller most likely manufactured numbers, reports, and/or spreadsheets to continue obtaining the loans, which is fraud.

Page/Case Updates

• The Court Cases page has been given an overhaul to make it easier to find specific cases.

• New case added! Funders App (Fundonatic) v. Paramount Management - judgment for Fundonatic $1.4 million on 10/30/24

• New case added! Libertas Funding v. Heller & Paramount Management - lawsuit filed 12/17/24 for $11.2 million

• New case added! Prosperum Capital Partner (Arsenal Funding) v. PowerCoin - lawsuit filed 1/14/25 for $181,567

• New case added! Westwood Funding Solutions v. H2 Ventures (Blackworth) - judgment for Westwood $96,439 on 1/15/25. Notice the name of the Defendant - H2 Ventures (Blackworth). That's the same name representing the Lititz PA restaurant that currently has eviction paperwork filed against it.

Here's what was discovered:

• Heller began borrowing large sums of money (millions of dollars) in January 2023. Of the 24 defaulted loans that we have documented, nearly half (11) promised Prestige investor earnings as the repayment method. Seven (7) defaulted loans came from standard banks, with the rest involving local individuals most likely personally connected to Heller. In all, Heller and his companies have accessed over $66 million through loans and promising receivables.

• In the nine months spanning November 2023 to July 2024, Heller received over $19.5 million in exchange for $26.3 million of future investor earnings. In short, he "borrowed" almost $20 million of investor money at a 35% markup.

Listing of all creditors/entities taking civil action against Heller