Investment managers under $700M class-action lawsuit scrutiny

A Paramount ATM was recently removed from a laundromat in Providence, Rhode Island, marking the retrieval of several Paramount ATMs that had been out of order since the previous fall. The ATMs were taken on behalf of investors in the ATM network formerly owned by Daryl Heller. While Heller is not a defendant in the class-action lawsuit, four of his partners in the investment network face legal action, alleging their involvement in a $700 million Ponzi scheme.

One of the defendants, Jerry Hostetter, partnered with Daryl Heller in 2011 to establish Prestige Investment Group, a company that sought investments in ATMs managed by Heller’s Paramount Management Group. Hostetter had previously owned and founded Hostetter Management Co., a hog management business in the Lititz area. Additionally, he served as vice president of fund development at Ephrata Community Hospital for several years. Hostetter played a crucial role in bringing the U.S. Women’s Open to Lancaster Country Club and graduated from Lancaster Mennonite High School, the same school Heller attended.

Randall Leaman, another defendant, served as the CEO and president of Paramount Management Group for several years. He also held positions in finance and operations in various businesses before working closely with Heller until 2024. Leaman has a background in English and journalism, and he was instrumental in the management of Heller’s ATM network.

Dave Zook, born in an Old Order Amish family, joined the ATM investment with Heller in 2012 and later became a chief syndicator for the ATM business. Zook also founded Real Asset Investor in 2015, promoting investments in various sectors. He is actively involved in real estate and investment opportunities near Atglen.

Buck Joffrey, a former surgeon, transitioned into real estate syndication and began investing in ATMs with Heller around 2021. Living in Santa Barbara, Joffrey hosts a podcast on wealth and has authored a book on financial strategies. He is known for his expertise in investing and financial management.

The class-action lawsuit involving these investment managers sheds light on the alleged mismanagement and misappropriation of investor funds within the ATM network. The legal proceedings will further investigate the role of each defendant in the Ponzi scheme and address the concerns of the 2,700 investors affected by the financial scandal. As the case unfolds, more details are expected to emerge regarding the extent of the misconduct and its impact on the investors involved.