Drive Planning LLC, a financial firm based in Georgia, is facing allegations of orchestrating a $300 million Ponzi scheme to fund the lavish lifestyle of its CEO, Russell Todd Burkhalter. The United States Securities and Exchange Commission (SEC) filed a civil lawsuit against Drive Planning and Burkhalter, accusing them of deceiving investors by promising high returns on purported real estate investments.
The SEC’s complaint outlines that from 2020 through at least June 2024, Drive Planning and Burkhalter raised over $300 million from more than 2,000 investors for supposed land development projects. Investors were lured in with promises of a 10% interest every 3 months, leading some individuals like Patrick and Laura Mcloughlin of Noblesville to invest their savings with Drive Planning in the hopes of securing their financial future.
However, it soon became apparent to the Mcloughlins and others that something was amiss. Despite receiving statements from Drive Planning that suggested their investments were profitable, the couple began to question the legitimacy of the firm’s operations. As more details emerged, it became clear that Drive Planning did not have a legitimate enterprise capable of generating the promised returns. Instead, Burkhalter allegedly used new investors’ money to pay returns to existing investors in a classic Ponzi scheme fashion.
The lawsuit further alleges that Burkhalter misappropriated investor funds to finance his extravagant lifestyle, including purchasing a $3.1 million yacht named “Stillwater.” Additionally, Burkhalter reportedly spent substantial amounts on luxury items such as clothing, jewelry, beauty treatments, private jets, and luxury car services. The SEC’s investigation revealed that investor funds were used for personal indulgences rather than legitimate investments as promised.
Despite the allegations, Burkhalter’s attorneys maintain that he denies the SEC’s claims. While Burkhalter cooperated with submitting court orders related to the case, he looks forward to resolving the matter swiftly. The court has appointed a receiver over Drive Planning to manage the firm’s assets during the ongoing legal proceedings.
The Mcloughlins and other impacted investors are left wondering about the fate of their investments, with Patrick expressing disappointment at the realization that their money may have been used to fund Burkhalter’s opulent lifestyle. Investigations into Drive Planning LLC’s activities continue, with no criminal charges filed as of now.
Drive Planning LLC’s website, which once touted opportunities for investors to take control of their financial future, now stands as a stark reminder of the alleged fraudulent activities that have come to light. In addition to Burkhalter, several entities including Jacqueline Burkhalter, the Burkhalter Ranch Corporation, Drive Properties LLC, Drive Gulfport Properties LLC, and TBR Supply House Inc. are named as defendants in the SEC’s lawsuit.
The SEC’s charges against Drive Planning and Burkhalter center on violations of federal securities laws’ antifraud provisions. Nekia Hackworth Jones, Director of the SEC’s Atlanta Regional Office, emphasized the importance of vigilance among investors when encountering offers that seem too good to be true. She highlighted the need for caution when faced with aggressive sales pitches promising high returns, as they may be indicative of fraudulent schemes like the one allegedly perpetrated by Drive Planning.
As investigations and legal proceedings unfold, impacted individuals are urged to reach out to investigative authorities like WRTV Investigates. The case serves as a cautionary tale for investors, underscoring the importance of due diligence and skepticism when evaluating investment opportunities. Drive Planning’s downfall sheds light on the potential risks associated with unscrupulous financial practices and serves as a reminder of the regulatory oversight necessary to protect investors from falling victim to fraudulent schemes.