PHILADELPHIA (KYW Newsradio) — Federal authorities say a Lancaster County man ran a year-long investment fraud scheme that cost thousands of people hundreds of millions of dollars.
U.S. Attorney for the Eastern District of Pennsylvania David Metcalf said that 55-year-old Daryl Heller of Lititz, scammed some 2,700 investors since 2017 out of more than $400 million, promising steady returns from ATM purchases.
“ATMs, a fitting symbol of quick money, lie at the heart of this case,” Metcalf said.
“Mr. Heller told investors that he was raising money to purchase and operate these ATMs and that they’d get a good, steady rate of return. But it was all a lie.”
He used separate companies to carry out different portions of the scheme; one bought the ATMs, while another operated the investment funds where investor money went. Authorities said very few of the machines were ever put into service, and that Heller instead enriched himself, paid off company debts, and used new money to pay earlier investors.
“The magnitude of this offense is enormous,” Metcalf said.
Metcalf said Heller’s scam was nationwide, but a majority of its victims were in Lancaster County and Eastern Pennsylvania.
Wayne Jacobs, the Special Agent in Charge in Philadelphia, said investigators believe there are still more victims to be identified.
“For those who may already be victims of this scheme, we want to hear from you,” he said. “By coming forward, you help us ensure that your losses are documented, your voice is heard, and that justice can be pursued.”
Heller was arrested on Wednesday morning in Lancaster and remains in custody, charged with one count of securities fraud and four counts of wire fraud.
Additional victims are directed to call the FBI tip line at (215) 418-4000 or leave an anonymous tip.