Security

Investors file additional lawsuit against Paramount Management Group owner

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January 29, 2025

Investors have filed a lawsuit against the defunct Paramount Management Group's owner Daryl Heller, according to a report by Lancaster Online. This is following winning a $140 million judgement against Heller and Paramount Management Group shutting down operations in December 2024.

The initial lawsuit was filed due to Paramount halting payments of ATM fees in April 2024. It then uncovered that Paramount's ATM network was much smaller than believed. Investors are now suing Heller as an attempt to get judgement payments from his other companies.

The lawsuit argues that Heller didn't use investor funds to purchase ATMs on their behalf, but instead only purchased used ATMs that stayed in a warehouse.

"Heller purchased them knowing he would never place them into service and he purchased them solely so he could, and later did, represent to the funds that he was complying with his obligations under the investment scheme," the suit states.

In a Jan. 22 email statement, Heller stated that, "is untrue that I intentionally impaired the ATM network. The Fund Managers know full well that the Lancaster litigation impaired the network in two ways: it strained relationships with key vendors, and it caused Paramount to lose customers."