Georgia Financial Adviser Sentenced to 20 Years for Nearly $400 Million Ponzi Scheme

ATLANTA, Ga. – Todd Burkhalter, founder and CEO of Georgia-based financial advisory firm Drive Planning LLC, has been sentenced to 20 years in federal prison for orchestrating a massive Ponzi scheme that defrauded more than 2,000 investors of approximately $380 million.

U.S. District Judge Tiffany R. Johnson sentenced Burkhalter, 55, of St. Petersburg, Florida, to the maximum 20-year federal prison term, followed by three years of supervised release. He was also ordered to pay $233,777,763.82 in restitution to victims.

Two other former Drive Planning executives, Chief Operating Officer David Bradford and Chief Administrative Officer Julie Edwards, were sentenced earlier in the week for their roles in the operation.

Federal prosecutors said the fraud operated from September 2020 through June 2024 and involved investment opportunities marketed by Drive Planning as safe, high-return investments backed by real estate and other assets.

Instead, authorities said investor money was used to pay earlier investors, commissions to Drive Planning agents and Burkhalter’s personal expenses, including a yacht, luxury real estate, vehicles and private jet travel.

“Todd Burkhalter lured investors to send millions of dollars to Drive Planning for investments that he knew didn’t actually exist,” U.S. Attorney Theodore S. Hertzberg said.

Prosecutors said investors were encouraged to take extraordinary financial risks to participate, including withdrawing money from retirement accounts, using their children’s college funds and borrowing money at high interest rates.

Investors Promised 10% Return Every Three Months

Drive Planning’s primary investment program was known as the Real Estate Acceleration Loan, or REAL.

Burkhalter marketed REAL as a bridge-loan investment that would provide investors with a guaranteed 10% return every three months, according to prosecutors.

Investors were told their money would finance short-term loans to real estate developers who needed immediate funding for projects.

Drive Planning also represented that the investments were fully collateralized by real estate.

Federal prosecutors said those representations were false.

To make the investments appear legitimate, Burkhalter directed the preparation of fraudulent “collateral sheets” listing properties and fictitious valuations. Prosecutors said some of the properties identified on those documents did not even exist.

Drive Planning also falsely represented relationships with real estate developers and claimed in investor promissory notes that investments were secured by properties within the portfolio of a prominent Atlanta developer.

That developer eventually discovered its name was being used and sued Drive Planning and Burkhalter in an effort to stop them from continuing to do so.

Prosecutors Say Ponzi Scheme Began With First REAL Investment

According to federal prosecutors, REAL operated as a Ponzi scheme from the very beginning.

Drive Planning received its first $50,000 REAL investment in September 2020. At least $21,000 of that money was immediately used to repay an earlier Drive Planning investor.

Authorities said none of the REAL investment funds were used for their advertised purpose of financing bridge loans or entering joint ventures with real estate developers.

Within the first few months, Burkhalter allegedly diverted at least $80,000 in investor funds to pay his former wife’s attorneys and expenses involving recreational vehicles.

As additional money came into Drive Planning, prosecutors said it was used to make payments to previous investors, pay commissions and finance personal spending.

$2 Million Yacht, Cabo Condo and Luxury Vehicles

Federal prosecutors detailed millions of dollars in expenditures funded with investor money.

Burkhalter spent approximately $2 million to purchase a yacht and another $2.1 million toward the purchase of a luxury condominium in Cabo San Lucas, Mexico, according to the government.

Approximately $800,000 went toward luxury vehicles, including a 2020 Prevost Marathon motorcoach and two 2024 Land Rovers.

Authorities said millions more were spent on luxury travel, including private jet charters.

Another approximately $320,000 was spent on clothing, jewelry and beauty treatments.

“Todd Burkhalter organized what is likely the largest Ponzi scheme in Georgia history to fund an extravagant lifestyle,” FBI Atlanta Special Agent in Charge Marlo Graham said.

Second Investment Program Promised 22% Annual Returns

Drive Planning also offered investors what it called the Cash Out Real Estate Fund, or CORE Fund.

The company advertised the program as providing “100% Passive Income from Tax Liens” and guaranteed investors a 10% return every six months or 22% annually for as long as three years.

Investors were told their money would be pooled, government-protected and fully collateralized.

Prosecutors said Drive Planning failed to disclose that it stopped investing any money in the CORE Fund after approximately Dec. 9, 2022.

Despite that, the company received at least $4.1 million from people seeking to invest in the CORE Fund.

Scheme Continued After SEC Investigation Began

The Securities and Exchange Commission began investigating Drive Planning around March 2024.

Federal authorities said Burkhalter and others continued soliciting investors even after learning of the investigation, bringing in tens of millions of additional dollars for REAL and the CORE Fund.

The SEC obtained a temporary restraining order against Drive Planning in August 2024 and filed federal civil enforcement actions related to the scheme.

A court-appointed receiver, Kenneth D. Murena, was tasked with recovering funds and selling assets in an effort to repay victims.

By the time the operation ended, prosecutors said more than 2,000 investors had been defrauded of approximately $380 million.

Two Other Drive Planning Executives Sentenced

Bradford, 53, of Peachtree Corners, served as Drive Planning’s chief operating officer and pleaded guilty to conspiracy to commit wire fraud for his involvement in the CORE Fund scheme.

He was sentenced to four years and three months in federal prison, followed by three years of supervised release. Bradford was also ordered to pay $4,297,878.16 in restitution.

Edwards, 59, of Cumming, was Drive Planning’s chief administrative officer and pleaded guilty to laundering proceeds from the Ponzi scheme.

She received two years in federal prison, followed by three years of supervised release, and was ordered to pay $630,000 in restitution.

Burkhalter, Bradford and Edwards will serve their federal prison sentences without the possibility of parole.

The FBI investigated the case with substantial assistance from the Securities and Exchange Commission. Assistant U.S. Attorney Kelly K. Connors and former Assistant U.S. Attorney Alex R. Sistla prosecuted the case.