Todd Burkhalter, founder and CEO of Georgia-based Drive Planning LLC, pleaded guilty to wire fraud for masterminding a years-long Ponzi scheme that defrauded more than 2,000 investors out of about $380 million.
Burkhalter "perpetrated what is likely the largest Ponzi scheme in Georgia history," U.S. Attorney Theodore S. Hertzberg said Wednesday in a statement. "Unbelievably, Burkhalter shamelessly continued to scam his victims even while under federal investigation. Today's guilty plea is just the first step in holding Burkhalter accountable for the considerable harm he caused."
According to the Justice Department, Burkhalter used investors' money to pay other investors, to compensate Drive Planning's agents, and to cover personal purchases, including:
- $2 million to purchase a yacht;
- $2.1 million as part of a purchase of a luxury condo in Cabo San Lucas, Mexico;
- $800,000 on multiple luxury vehicles;
- $320,000 on clothing, jewelry and beauty treatments.
Between September 2020 and June 2024, Drive Planning, at Burkhalter's direction, marketed several investment opportunities, including the "Real Estate Acceleration Loan" opportunity ("REAL") and the "Cash Out Real Estate Fund" ("CORE Fund"), according to Hertzberg.
"REAL was Drive Planning's primary investment vehicle, which Burkhalter fraudulently marketed as a bridge loan opportunity that would guarantee investors a 10% return every three months," the Justice Department said.
Burkhalter formerly held a Series 65 securities license, according to the Securities and Exchange Commission.
He was a licensed life insurance agent in Georgia from 1997 to 2024. In July 2024, when he became inactive, he had appointments in Georgia with five issuers.
In 2011, the National Association of Insurance and Financial Advisors chapter in Atlanta named him to be one of the recipients of its first Top Advisors Under 40 award.
Tapping Retirement Accounts
The SEC began investigating Drive Planning in March 2024 and filed charges in August of that year. The SEC claimed that from 2020 through at least June 2024, Burkhalter ran a Ponzi scheme that sold unregistered securities in the form of "Real Estate Acceleration Loans."
Burkhalter "encouraged people to tap their savings, their IRAs, and even lines of credit, to invest in REAL," the SEC said.
Hertzberg said that Burkhalter and others "continued to solicit tens of millions of dollars in investments for REAL and the CORE Fund," even after the SEC probe.
Burkhalter and Drive Planning also falsely represented the extent of the firm's relationship with real estate developers. In particular, Drive Planning highlighted its supposed relationship with a well-known real estate developer in Atlanta. The developer sued Drive Planning and Burkhalter seeking to enjoin them from further using the name.
"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," DOJ said.
Drive Planning "claimed that it offered short-term loans — the bridge loans — to real estate developers who needed immediate cash flow to complete existing projects or fund new ones," DOJ explained.
"Burkhalter and Drive Planning deceived investors into believing their investments were safe by claiming that they were fully collateralized by real estate," DOJ states. "To perpetuate these lies, 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."
For the CORE Fund, Drive Planning falsely claimed that it provided "100% Passive Income from Tax Liens."
"Drive Planning guaranteed investors a return of 10% every six months or a 22% return per year for up to three years," and misrepresented that investors' contributions to the CORE Fund "were pooled together, government-protected, and fully collateralized," DOJ said.
Burkhalter and others at Drive Planning also failed to disclose that Drive Planning "did not invest any funds in the CORE Fund" after about Dec. 9, 2022, the DOJ explained.
Drive Planning received at least $4.1 million from individuals who sought to invest in the CORE Fund.
What's Next?
Sentencing for Burkhalter, 54, of St. Petersburg, Florida, will be scheduled at a later date before Judge Tiffany R. Johnson of the U.S. District Court for the Northern District of Georgia.
Pursuant to a plea agreement, the government has conditionally promised to recommend that Burkhalter be sentenced to 17 1/2 years of imprisonment, the DOJ said.
David Bradford, Drive Planning's former chief operating officer, pleaded guilty to conspiracy to commit wire fraud Dec. 16 based on his involvement in the CORE Fund scheme, according to DOJ. His sentencing hearing is scheduled for March 17 before Johnson.
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