Philadelphia, Pennsylvania – Securities Fraud Attorneys, on behalf of Batman Investments LLC and a proposed class of investors, has filed a securities class action alleging that Prestige Funds and Paramount Management Group operated a Ponzi scheme built on false statements about ownership and operation of ATM machines.

The complaint, Batman Investments LLC v. Hostetter, et al., was filed Aug. 27, 2025, in the U.S. District Court for the Eastern District of Pennsylvania. The action seeks at least $700 million in compensatory damages, plus pre- and post-judgment interest.

Defendants are identified as Jerry Hostetter, Mir Jafer Ali “Buck” Joffrey, Randall Leaman and David Zook. The proposed class alleges the companies and their executives raised roughly $700 million from about 2,700 investors by claiming to own and operate about 38,000 ATMs nationwide. According to the complaint, Prestige and Paramount owned fewer than 10,000 ATMs, with fewer than 1,000 in operation, and used new investor funds to pay prior investors.

The suit alleges that executives diverted investor money for their personal benefit and concealed mounting losses through deceptive accounting practices. The filing cites missed investor payments beginning in April 2024 and references subsequent events involving non-party Daryl Heller, including an FBI search in December 2024 and a February 2025 bankruptcy.

“We are seeing a rise in cases involving unregistered securities raising millions of dollars using unlicensed promoters to help raise capital,” said Scott Silver, managing partner of Securities Fraud Attorneys. “Unfortunately, while privately held companies need access to capital, investors need to be careful about false representations, securities fraud, and the proliferation of Ponzi schemes in the private marketplace.”

The case seeks to certify a class of investors who purchased interests in the Prestige Funds and related entities tied to Paramount’s ATM operations. The complaint alleges violations of federal securities laws and state-law claims and requests a jury trial.

Investors who purchased interests associated with Prestige Funds, Paramount Management Group or related entities and who suffered losses are encouraged to contact Securities Fraud Attorneys for a confidential consultation.

CASE INFORMATION

U.S. District Court for the Eastern District of Pennsylvania
Batman Investments LLC v. Hostetter, et al.
Case No. 5:25-cv-04911