A Georgia financial advisor has pleaded guilty to orchestrating a $380 million Ponzi scheme that bilked thousands of people who invested their money with his firm, according to Financial Advisor.
Federal prosecutors said the case, involving 54-year-old Todd Burkhalter, founder and CEO of Drive Planning LLC, was likely the largest Ponzi scheme in Georgia’s history.
Burkhalter pleaded guilty to wire fraud for using his firm to carry out several fraudulent investment schemes and using the money to finance a lavish lifestyle that included purchases of a $2 million yacht, a $2.1 million condo in Mexico, a motorcoach, and other luxury vehicles. Additional millions were spent on private jet travel, jewelry, designer clothing and beauty treatments.
The U.S. Attorney’s Office for the Northern District of Georgia said Burkhalter defrauded more than 2,000 people between September 2020 and June 2024, many of whom were encouraged to invest their retirement savings and life insurance proceeds.
The scheme centered on two primary investment vehicles offered by Drive Planning: the “Real Estate Acceleration Loan” (REAL) and the “CORE Fund.” Prosecutors said Burkhalter promised steady returns for investors by claiming the money funded bridge loans for real estate developers.
According to the U.S. Attorney, Drive Planning claimed that investing in REAL and the CORE Fund was “easy and simple,” telling prospective investors that they did not need to be accredited investors to participate and encouraging them to invest money from retirement accounts, savings, and lines of credit. Burkhalter claimed the loans were short-term, fully collateralized and secured by real property. To perpetuate these claims, Burkhalter directed Drive Planning to prepare fraudulent “collateral sheets” identifying properties, some of which did not even exist, with fictitious valuations that purportedly served as collateral for investments.
Instead, prosecutors said, Burkhalter operated REAL as a Ponzi scheme from its inception. “In September 2020, after Drive Planning received its first $50,000 investment in REAL, Burkhalter used at least $21,000 to repay an earlier Drive Planning investor,” the U.S. Attorney said. “None of the REAL funds were used for their supposed intended purpose—to finance bridge loans or enter joint ventures with real estate developers. Instead, within the first couple of months of marketing REAL, Burkhalter used at least $80,000 in investor money to pay his ex-wife’s attorneys and expenses related to recreational vehicles.”
In the case of the CORE Fund, Drive Planning falsely claimed that it provided “100% Passive Income from Tax Liens,” and that investors were guaranteed a return of 10% every six months or a 22% return per year for up to three years. Drive Planning further misrepresented that investors’ contributions to the CORE Fund were pooled together, government-protected, and fully collateralized. Burkhalter and others at Drive Planning failed to disclose that Drive Planning did not invest any funds in the CORE Fund after approximately December 9, 2022, yet they continued to solicit new funds.
“Todd Burkhalter built a massive Ponzi scheme on lies, exploiting trust to steal hundreds of millions of dollars,” Paul Brown, special agent in charge of FBI Atlanta, said. “The FBI will continue to aggressively pursue those who weaponize fraud and deception against investors.”
Even after the SEC started investigating Drive Planning in approximately March 2024, Burkhalter and others continued to solicit tens of millions of dollars in investments for REAL and the CORE Fund.
In August 2024, the SEC obtained a temporary restraining order against Drive Planning and filed civil enforcement actions in federal court against Drive Planning and others related to the scheme. A court-appointed receiver will now try to recover funds and sell assets to repay Drive Planning’s victims.
Under the plea agreement, federal prosecutors said they plan to recommend a 17½-year prison sentence for Burkhalter. Sentencing will be scheduled at a later date before U.S. District Judge Tiffany R. Johnson, who is not bound by the government’s recommendation.
Hyman Cotter PC routinely represents investors harmed when financial professionals and their firms engaged in misconduct that caused their clients investment losses. Our team includes lawyers who have worked for large financial institutions, including Morgan Stanley and UBS Financial Services, and regulatory bodies such as the SEC. If you think your financial professional or firm engaged in misconduct that caused you investment losses, contact Hyman Cotter PC at (866) 435 2031 or through our online contact form for a no-cost evaluation of your matter.
