ATM King: Royally Screwed

Episode 3

Empty Turnpike ATMs - All Roads Lead to Heller

Overview

November 2024 ushered in a season of growing discontent for Paramount Management Group and its investors. As families across Lancaster County prepared for the Thanksgiving holiday, a storm of missed deadlines and legal battles cast a long shadow over the company’s promises. The Pennsylvania Turnpike became a symbol of Paramount’s failure, with all ATMs at its 17 rest stops emptied and shut down. This highly visible failure signaled to investors and the public alike that Paramount’s operations were in a freefall.

No Halloween Treats This Year

Halloween night brought more tricks than treats for investors in Prestige Funds. As the last of the costumes were packed away, fund managers fired off an email full of optimism, claiming that only "a few administrative tasks" stood in the way of a major financial transaction. Payments, they assured, would begin “within the next twenty-four hours,” with distributions soon to follow. The assurances seemed credible enough, but by the time November dawned, the promised payday was still nowhere in sight. That first weekend in November, Fund managers had struck yet another agreement with Heller and Paramount. In this arrangement, the October 31st payment would be distributed to investors on November 4th.

November 4 was a rinse and repeat of the previous weekend - investors were notified by Prestige Fund managers of yet another payment delay. The following day, Heller again sought to reassure stakeholders, texting reporters that his team was “working diligently on this complex transaction” and expected funding to close soon. He attributed the delays to logistical issues with a purchase agreement for the ATMs and promised that no investor would receive less than their original investment.

"I am doing my best to find a reasonable position for them in the context of the current reality."

Daryl Heller statement to LNP regarding the 10/31/24 payment

November 14, 2024

By mid-November, judicial intervention became inevitable. On November 14, after Paramount defaulted on the November 4th payment deadline, plaintiffs filed a motion requesting a $138 million judgment against the company if payments were not made by November 20. The motion also demanded that Paramount provide a complete list of ATMs purchased by plaintiffs and transfer all associated rights, including location agreements and system passwords, within seven days.

Judge Leonard Brown III approved the stipulation the same day, signaling the increasing urgency of the case.

Setting the stage for future a legal ruling

November 22, 2024

As most expected, the November 20 deadline passed without payment. The court acted swiftly, granting the $138 million judgment and enforcing the stipulations outlined in the November 14 motion. Heller attempted to deflect attention, blaming the missed deadline on complications from a Michigan lawsuit involving Superior Group ATMs, which was seeking a $6 million judgment against Paramount. “We hope to have signatures and complete everything today or tomorrow,” Heller claimed in a text message to LancasterOnline, but could anyone afford to believe a word he said?

The fallout deepened on November 22 when Paramount’s legal team from DLA Piper LLP requested to withdraw from the case. In their filing, the attorneys cited Paramount’s lack of cooperation leaving them unable to represent the company effectively. "DLA Piper lacks the information and the client assistance, cooperation, and communication necessary to continue to represent Paramount with regard to future proceedings in this matter," the filing stated. Their departure further highlighted the chaos within Paramount’s ranks and marked another setback for Heller.

Paramount's legal team requests to quit the case

November 25-27, 2024

The Heller family turkey was dressed with a very public display of Paramount's collapse. Rumblings on social media began on November 25, with one user describing widespread panic at Paramount as cash was pulled from ATMs and an important company-wide meeting had been cancelled. Another Reddit user, claiming identity as Jorge Fernandez, wrote, "Massive panic going on this morning at Paramount. Seems the fat lady is gargling in the back room and ready for her crescendo."

On November 27, those statements were confirmed when the Pennsylvania Turnpike Commission announced that all Paramount-managed ATMs at its 17 service plazas had been shut down, with cash removed from the machines. Paramount informed the commission that it could no longer meet its contractual obligations, leaving one of its most visible operations in ruins. For travelers, it was a minor inconvenience, though an unwelcome one so close to Thanksgiving.

What's Next?

For months, the unraveling of Paramount Management Group and its web of broken promises has simmered in civil courtrooms. But December brings a new chapter, one that hits harder and deeper. As FBI and SEC agents swarm Daryl Heller's business and home, the case transforms into a criminal spectacle. With chaos brewing, plaintiffs in the Prestige lawsuit scramble to uncover justice, as promised buyouts result in letdown. Will these late-year developments push the saga toward resolution or leave 2024 teetering on a cliffhanger of unanswered questions?

Stay tuned for Episode 4, delving into the dramatic events of December 2024!

Episode Resources

CountySuite: CI-24-06012, CI-24-06012 (Lancaster County Court of Common Pleas). Retrieved January 8, 2025, from https://portal.lancaster.pa.countysuite-azuregov.us/courts.civil.publicsearch/(S(kef0asr2iadmng0aznc0b5v5))/ng/case/1143851.

Umble, C. (2024a, November 1). Investors in Lancaster-based ATM network still awaiting payment after latest deadline passes. LancasterOnline. https://lancasteronline.com/business/local_business/investors-in-lancaster-based-atm-network-still-awaiting-payment-after-latest-deadline-passes/article_bed1479c-985c-11ef-a009-b7fb0bb25459.html.

Umble, C. (2024b, November 5). Another missed payment deadline for investors in Lancaster-based ATM network. LancasterOnline. https://lancasteronline.com/business/local_business/another-missed-payment-deadline-for-investors-in-lancaster-based-atm-network/article_250297ea-9b97-11ef-9eaf-430019e18aab.html.

Umble, C. (2024c, November 21). Owner of Lancaster-based ATM network hit with $138M judgment after missing another deadline to pay investors. LancasterOnline. https://lancasteronline.com/business/local_business/owner-of-lancaster-based-atm-network-hit-with-138m-judgment-after-missing-another-deadline-to/article_9678f230-a825-11ef-bf2e-77959af5a3b4.html.

Disclaimer and other information

As these episodes pick up attention, I figured it might be best to document this disclaimer (most Watchdog articles don't get attention outside of our small town):

The author of this blog has no financial interest or investment, personal or familial connection, bone to pick, axe to grind, bellyache, personal vendetta, ulterior motive, or any other wild and/or sordid arrangement, with any of the parties identified or discussed in this series. It's simply personal intrigue at what appears to be a historical financial scandal happening right here in our local communities. I'm not a journalist, make no claims to such, and have no interest in competing with those who provide the news as a career. My goal is simply to provide the information I've compiled through news reports, court documents, social media, and personal contacts with investors in a comprehensive manner that puts all of the pieces together. There's more than just the hot local Prestige v. Paramount case - the numerous creditors filing lawsuits and dozens of our own neighbors losing jobs just before Christmas paint a picture of unbridled greed. <--- Again, you know, that's just, like, my opinion, man.

For another series of news reports, please view the many articles written by LancasterOnline reporters Dan Nephin and Chad Umble. (A paid subscription is necessary to view most articles)