The Securities and Exchange Commission has obtained a preliminary injunction and asset freeze against Drive Planning LLC and its founder and CEO, Russell Todd Burkhalter, to halt an alleged $300 million Ponzi scheme that affected over 2,000 investors and funded Burkhalter's lavish lifestyle, the agency announced.
Burkhalter used misappropriated investor assets to buy a yacht and make other expensive purchases, and to make Ponzi-like payments, the commission announced Wednesday. The court has appointed a receiver for Drive Planning, which is based in greater Atlanta and has an office in St. Petersburg, Florida, per its LinkedIn profile.
According to the SEC's Investment Advisor database, Burkhalter became an RIA in 2008 with OneAmerica Securities; his last affiliation was with Ashworth Sullivan Wealth Management Group in 2014.
The SEC's complaint, filed in U.S. District Court for the Northern District of Georgia, alleges that from 2020 through at least June, Drive Planning and Burkhalter raised more than $300 million for purported real estate investments, telling investors that their money would be used to fund land development projects.
The defendants promised 10% interest every three months and encouraged investors to tap their savings and retirement accounts and to open lines of credit to invest.
In reality, Burkhalter and Drive had no business capable of ]generating the promised returns and instead used investor funds to make Ponzi-like payments, the SEC alleged in the complaint and a news release.
The complaint alleges that Burkhalter stole investor funds to purchase a $3.1 million yacht and to spend $4.6 million on chartering private jets and car services, as well as $2 million on a condo.
