SEC Whistleblower Tip Leads to Charges in $770M Ponzi Scheme Targeting Retail Investors

by Matthew P. Suzor and Alden Hey

The SEC has charged a Pennsylvania resident and his companies with running a $770 million Ponzi scheme that defrauded thousands of retail investors. While the agency has not yet disclosed whether a tip came from a whistleblower, the scale of the fraud highlights the critical role SEC whistleblowers play in uncovering investor fraud and driving major enforcement actions.

Primary Allegations

In a press release on September 3, 2025, the Securities and Exchange Commission (SEC) announced that it charged Daryl F. Heller (“Heller”) and his businesses, Prestige Investment Group, LLC (“Prestige”) and Paramount Management Group, LLC (“Paramount”), for engaging in a multi-year Ponzi scheme that cost investors approximately $400 million.

The alleged fraud took place from 2017 through 2024 and involved over $770 million across roughly 2,700 investors who were told by Heller that they were investing in an ATM network. According to the complaint, Heller misrepresented the size and success of Paramount’s ATM network, with monthly payments to investors instead being drawn from new investors and high-interest, short-term loans. The complaint further alleges that Heller hijacked over $185 million in investor funds, which he used to acquire a beach house and redirect funds into his other businesses.

Heller, Prestige, and Paramount are alleged to have violated antifraud provisions within federal securities laws by engaging in the Ponzi scheme. In addition to charges from the SEC, Daryl Heller also faces criminal charges from the U.S. Attorney’s Office for the Eastern District of Pennsylvania. While whether or not a whistleblower was involved in these investigations remains unknown, SEC whistleblowers play a critical role in uncovering and prosecuting similar cases.

How do SEC Whistleblowers Contribute to Uncovering Fraud Like This?

Whistleblowers are often crucial for combatting fraud as they provide critical information including financial statements, motivations, and communications that would have been otherwise hidden from investigators. Without their involvement, the SEC would be significantly less effective at uncovering fraud and other offenses.

By coming forward, SEC whistleblowers provide information that can help lead to the recovery of hundreds or thousands of fraud victims. In addition to aiding in the justice process, SEC whistleblowers are also eligible for financial compensation for their participation.

What Rewards and Protections are Available to an SEC Whistleblower?

The SEC is authorized to reward whistleblowers who provide high-quality and original information with between 10% and 30% of the funds collected from resulting enforcement action sanctions so long as over $1 million is ordered. As a result of this generous program, over $2.9 billion dollars in settlements and judgements from whistleblower cases were recovered in 2013 alone, representing roughly 76% of all funds collected from government fraud cases. In April of 2025, the SEC awarded $6 million to two whistleblowers after they provided new information that ultimately resulted enforcement action.

These whistleblowers are also afforded various protections under the law to shield them from retaliation from their current employers, as well as disparate treatment from potential future employers. The Dodd-Frank Act protects your rights as an SEC whistleblower by preventing your employer from “discharging, demoting, suspending, threatening, harassing, directly or indirectly, or in any other manner discriminating against” you following your cooperation with an SEC investigation. Additionally, whistleblowers maintain the right to complete anonymity throughout the SEC whistleblowing process. At Miller Shah, we are committed to protecting your rights as an SEC whistleblower throughout and following your cooperation in an SEC investigation.

How Does Miller Shah LLP Support SEC Whistleblowers Throughout the Submission, Investigation, and Award Process?

As an SEC whistleblower, it is important to retain counsel that has the requisite skill and experience in whistleblower recoveries to both maximize your reward and protect your rights. At Miller Shah LLP, our extensive track record speaks for itself. With over 1 billion dollars recovered, Miller Shah LLP is nationally recognized for our efficacy, professionalism, and attentiveness throughout the whistleblower process.

Contemplating blowing the whistle? Schedule a free consultation with our Philadelphia whistleblower attorneys through the form below.