Russell Todd Burkhalter and Drive Planning LLC Accused of Orchestrating $300 Million Fraud
The Securities and Exchange Commission (SEC) has taken decisive steps against Drive Planning LLC, an Atlanta-based firm, and its founder and CEO, Russell Todd Burkhalter, by obtaining a preliminary injunction and freezing assets to stop an alleged $300 million Ponzi scheme. The scheme is reported to have defrauded over 2,000 investors, many of whom were lured in with promises of substantial returns from supposed real estate investments.
The SEC’s complaint alleges that Burkhalter and his firm misappropriated millions from investors, using the funds to finance a lavish lifestyle, including the purchase of a $3.1 million yacht, and extravagant expenditures on private jets, luxury cars, and a high-end condo. Investors were led to believe their money was being used for lucrative land development projects, with assurances of a 10% return every three months. However, the SEC contends that these promises were nothing more than a façade, with the firm using new investor money to pay returns to existing investors—a classic Ponzi scheme structure.
Nekia Hackworth Jones, Director of the SEC’s Atlanta Regional Office, emphasized the dangers of such schemes, stating, “Drive Planning and Burkhalter gained the trust of everyday people and encouraged them to invest in this scheme by promising exorbitant returns, but as our complaint alleges, the defendants’ business was nothing more than a classic Ponzi scheme, using new investor money to pay returns to existing investors, with Burkhalter stealing millions to fund a lavish lifestyle. Investors should be vigilant when they encounter aggressive sellers who make over-the-top sales pitches and promise high rates of guaranteed returns.”
The SEC has not only frozen the assets of Drive Planning and Burkhalter but also appointed a receiver to oversee the firm. The emergency relief obtained by the SEC, which the defendants did not contest, aims to protect the interests of the defrauded investors while the case proceeds. The SEC is pursuing permanent injunctions, the return of ill-gotten gains with interest, civil penalties, and a bar preventing Burkhalter from serving as an officer or director in the future.
The case is currently being handled in the U.S. District Court for the Northern District of Georgia, with ongoing investigations and litigation led by a dedicated team from the SEC’s Atlanta Regional Office. The SEC’s actions reflect its commitment to protecting investors and holding those who perpetrate fraud accountable.
For those affected by the scheme or those seeking more information, the SEC’s ongoing investigation will continue to uncover the full extent of the misconduct, and further developments are expected as the case moves forward.