National investment loss lawyers KlaymanToskes is investigating brokerage firms and financial advisors who recommended investments in the Prestige Funds or Paramount Management Group to their customers. The Securities and Exchange Commission (“SEC”) has deemed the operation “a multi-year Ponzi scheme” that resulted in $400 million in investor losses.
If your brokerage firm or financial advisor recommended investments in any of the Prestige Funds or Paramount Management Group, you may be entitled to a financial recovery through FINRA arbitration.
If you suffered losses in the Prestige Funds or Paramount Capital Management due to a recommendation by your brokerage firm or financial advisor, contact securities attorney Steven D. Toskes to discuss your potential recovery options at (888) 997-9956 or investigations@klaymantoskes.com for a free and confidential consultation. We do not collect attorney’s fees unless we are able to obtain a financial recovery for you.
Paramount Management Group LLC and Prestige Investment Group LLC were owned by Daryl Heller, who was charged today, September 3, 2025, with one count of securities fraud and four counts of wire fraud by the U.S. Department of Justice. According to the Securities and Exchange Commission (“SEC”), Heller operated a “a multi-year Ponzi scheme” that resulted in $400 million in investor losses. The scheme led investors to believe their investments were supporting a successful ATM network which would result in 25% returns. In reality, many of the ATMs did not exist, were broken, or in storage.
The complaint by the SEC states that Paramount Management Group LLC, Prestige Investment Group LLC and Heller raised more than $770 million from approximately 2,700 investors.
The complaint also identifies funds offered by Heller’s companies as the following:
Prestige Funds Management, LLC
Prestige Funds Management II, LLC
Prestige Funds Management III, LLC
WF Velocity Funds Management, LLC
Investors whose brokers/financial advisors recommended investments in any of the Premier Funds or Paramount Management Group are encouraged to contact attorney Lawrence L. Klayman, Esq., at 888-997-9956 or by email at investigations@klaymantoskes.com to their legal options.
Ponzi schemes are inherently unsustainable and are generally uncovered when the inflow of new investor funds is inadequate to satisfy the returns promised to earlier investors, particularly during market downturns when redemption demands deplete remaining assets.
Under FINRA Rule 3110, member firms are required to establish and maintain a system to supervise the activities of their associated persons that is reasonably designed to achieve compliance with securities laws and regulations. Brokerage firms must supervise their representatives to ensure they are selling approved securities and acting in the best interests of their customers.
Investors that suffer losses in a ponzi scheme as a result of a brokerage firm’s failure to supervise may be entitled to recover their losses through a FINRA arbitration claim.
To recover investment losses, you do not go through the traditional court system with a lawsuit. The only remedy is through a FINRA arbitration, a specific process designed for these types of disputes. This process involves presenting your case to a panel set by the Financial Industry Regulatory Authority (FINRA), not a courtroom. This approach is streamlined and focused on investment disputes, making it a suitable and effective way for investors to seek compensation for losses caused by financial advisors or brokerage firms.
FINRA (the Financial Industry Regulatory Authority) is a self-regulatory organization that oversees brokers and brokerages. In the event of a dispute between an investor and their financial advisor, investors can choose to file a FINRA arbitration claim. FINRA is overseen by the Securities and Exchange Commission (“SEC”).
The arbitration process is designed to be much faster than the court system and allows both parties to present their case before a panel of arbitrators. The arbitrators will then decide how to resolve the dispute, including ordering the advisor to pay damages for any losses suffered by the investor.
If you suffered Prestige Funds losses or other investment losses as a result of a recommendation by your financial advisor, you are encouraged to contact attorney Steven D. Toskes, at 888-997-9956 or by email at investigations@klaymantoskes.com to discuss recovery options. We do not collect attorney’s fees unless we are able to obtain a financial recovery for you.
As an investor, there are signs that you should look out for if you believe you have a claim against your broker/advisor for unsuitable investment recommendations. These signs could potentially indicate misconduct, negligence, or investment fraud. Investors are encouraged to contact our firm immediately if you have experienced any of the following:
Some investors have close relationships with their brokers due to the time and trust built over the course of their investment relationship. However, it is crucial to remember that financial decisions should be based on careful analysis and due diligence rather than solely relying on personal relationships.
Engaging the services of an experienced securities attorney to evaluate your specific circumstances is strongly advised. At KlaymanToskes, our team of experienced securities attorneys has a deep understanding of this complex area of law, allowing us to provide invaluable insight and tailored guidance that directly addresses your individual needs.
If you purchased Prestige Funds, or any other unsuitable investments through your financial advisor/brokerage firm, and suffered significant losses, contact KlaymanToskes at 888-997-9956 or fill out a short contact form for a free and confidential consultation. We do not collect attorney’s fees unless we are able to obtain a financial recovery for you.