Drive Planning Founder Pleads Guilty to $380 Million Ponzi Scheme
From the desk of Jim Eccleston at Eccleston Law
Todd Burkhalter, founder and chief executive officer of Drive Planning LLC, has pleaded guilty to wire fraud after admitting he orchestrated a $380 million Ponzi scheme that defrauded more than 2,000 investors.
According to Financial Advisor News, authorities described the fraud as the largest Ponzi scheme uncovered in Georgia. The scheme took place between 2020 and 2024. Prosecutors alleged that Burkhalter used his Alpharetta-based advisory firm to market fraudulent investment strategies centered on real estate and tax lien opportunities that promised consistent, high returns.
Drive Planning promoted two primary investment programs: the Real Estate Acceleration Loan program, known as REAL, and the Cash Out Real Estate Fund, known as the CORE Fund. Financial Advisor News reports that prosecutors stated that both programs were marketed as low-risk investment opportunities, but neither operated as represented.
Federal authorities stated that Burkhalter used investor funds to sustain the scheme and finance personal expenditures. Prosecutors alleged that Burkhalter paid earlier investors with funds obtained from newer investors and paid commissions to sales agents.
Under the plea agreement, federal prosecutors plan to recommend a 17½-year prison sentence for Burkhalter, though the sentencing judge retains discretion over the final penalty. Burkhalter previously held a Series 65 investment adviser license and worked with several firms through 2014. However, he was not registered with the SEC or FINRA during the period when Drive Planning marketed the unregistered securities at issue, according to Financial Advisor News.
Eccleston Law LLC represents investors and financial advisors nationwide in securities, employment, transition, regulatory, and disciplinary matters.
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