Drive Planning Fraudsters Sentenced to Federal Prison for Operating Massive $380 Million Ponzi Scheme

ATLANTA - Todd Burkhalter, the founder and Chief Executive Officer of the Georgia-based financial advisory group Drive Planning LLC ("Drive Planning"), was sentenced today to serve 20 years in federal prison, the maximum allowed by law, for orchestrating a years-long Ponzi scheme that resulted in thousands of investors losing nearly $400 million. Two other top executives of Drive Planning, David Bradford and Julie Edwards, were sentenced to federal prison earlier this week for their roles in the scheme.

"Todd Burkhalter lured investors to send millions of dollars to Drive Planning for investments that he knew didn't actually exist," said U.S. Attorney Theodore S. Hertzberg. "He promised investors that they were guaranteed substantial returns on their investments, and he ruthlessly encouraged them to deplete their kids' college funds, take early distributions from retirement accounts, and borrow significant sums at high interest rates. The sentences in this case should discourage other financial advisors from choosing insatiable greed and lies over honest investment strategies."

"Todd Burkhalter organized what is likely the largest Ponzi scheme in Georgia history to fund an extravagant lifestyle. He even continued to exploit victims while under federal investigation," said Marlo Graham, Special Agent in Charge of FBI Atlanta. "The FBI is committed pursue fraudsters like Burkhalter and seek justice for every victim."

According to U.S. Attorney Hertzberg, the charges, and other information presented in court: between September 2020 and June 2024, Drive Planning, at Burkhalter's direction, marketed several investment opportunities, including: (a) the "Real Estate Acceleration Loan" opportunity or "REAL," and (b) the "Cash Out Real Estate Fund" or "CORE Fund." Drive Planning claimed that investing in REAL and the CORE Fund was "easy and simple," telling prospective investors that they did not have to be accredited investors to participate and encouraging them to invest money from retirement accounts, savings, and lines of credit.

REAL was Drive Planning's primary investment vehicle, which Burkhalter fraudulently marketed as a bridge loan opportunity that would guarantee investors a 10% return every three months. Drive Planning claimed that it offered short-term loans-the bridge loans-to real estate developers who needed immediate cash flow to complete existing projects or fund new ones. Burkhalter and Drive Planning deceived investors into believing their investments were safe by claiming they were fully collateralized by real estate. To perpetuate these lies, Burkhalter directed Drive Planning to prepare fraudulent "collateral sheets" identifying properties-some of which did not even exist- with fictitious valuations that purportedly served as collateral for investments.

Burkhalter and Drive Planning also falsely represented the extent of its relationship with real estate developers. In particular, Drive Planning highlighted its supposed relationship with a well-known real estate developer in Atlanta, Georgia ("Real Estate Developer-1"). In promissory notes with investors, Drive Planning falsely claimed investments were secured by real property within Real Estate Developer-1's portfolio. Eventually, Real Estate Developer-1 became aware that Drive Planning and Burkhalter were fraudulently using its name to promote the REAL opportunity. Real Estate Developer-1 sued Drive Planning and Burkhalter, seeking to enjoin them from further using Real Estate Developer-1's name.

For the CORE Fund, Drive Planning falsely claimed that it provided "100% Passive Income from Tax Liens." Drive Planning guaranteed investors a return of 10% every six months or a 22% return per year for up to three years. Drive Planning further misrepresented that investors' contributions to the CORE Fund were pooled together, government-protected, and fully collateralized. Additionally, Burkhalter and others at Drive Planning failed to disclose that Drive Planning did not invest any funds in the CORE Fund after approximately December 9, 2022. In total, Drive Planning received at least $4.1 million from individuals who sought to invest in the CORE Fund.

Burkhalter operated REAL as a Ponzi scheme from the inception. In September 2020, after Drive Planning received its first $50,000 investment in REAL, Burkhalter used at least $21,000 to repay an earlier Drive Planning investor. None of the REAL funds were used for their supposed intended purpose: to finance bridge loans or enter joint ventures with any real estate developers. Indeed, within the first couple of months of marketing REAL, Burkhalter used at least $80,000 in investor money to pay his ex-wife's attorneys and expenses related to recreational vehicles.

Throughout the scheme, investors' monies were used to pay off other Drive Planning investors, make commission payments to Drive Planning's agents, and pay for personal expenditures. For example, Burkhalter spent approximately:

• $2 million to purchase a yacht;
• $2.1 million as part of a purchase of a luxury condo in Cabo San Lucas, Mexico;
• $800,000 on multiple luxury vehicles, including a 2020 Prevost Marathon motorcoach and two 2024 Land Rovers;
• Millions of dollars on luxury travel, including chartering private jets; and
• $320,000 on clothing, jewelry, and beauty treatments.

Even after the Securities and Exchange Commission ("SEC") began investigating Drive Planning in approximately March 2024, Burkhalter and others continued to solicit tens of millions of dollars in investments for REAL and the CORE Fund. Over the course of the scheme, Burkhalter defrauded more than 2,000 investors out of approximately $380 million.

In August 2024, the SEC obtained a temporary restraining order against Drive Planning and filed civil enforcement actions in federal court against Drive Planning and others related to the above-described scheme. Court-appointed receiver Kenneth D. Murena is responsible for attempting to recover funds and sell assets to repay Drive Planning's many victims.

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

Earlier this week, Judge Johnson sentenced two other Drive Planning employees, David Bradford and Julie Edwards:

• David Bradford, 53, of Peachtree Corners, Georgia, was Drive Planning's Chief Operating Officer. He previously pleaded guilty to conspiracy to commit wire fraud for his role in the CORE Fund scheme. He was sentenced to four years and three months in prison, to be followed by three years of supervised release, and was ordered to pay $4,297,878.16 in restitution to victims.
• Julie Edwards, 59, of Cumming, Georgia, was Drive Planning's Chief Administrative Officer. She previously pleaded guilty to laundering proceeds of the Ponzi scheme. She was sentenced to two years in prison, to be followed by three years of supervised release, and was ordered to pay $630,000 in restitution to victims.

The defendants' sentences will be served without the possibility of parole. Parole has been abolished in the federal system.

This case was investigated by the Federal Bureau of Investigation with substantial assistance from the Securities and Exchange Commission.

Assistant United States Attorney Kelly K. Connors and former Assistant United States Attorney Alex R. Sistla prosecuted the case.

For further information please contact the U.S. Attorney's Public Affairs Office at [email protected] or (404) 581-6185. The Internet address for the U.S. Attorney's Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.