A Georgia financial advisor will spend the next two decades in federal prison after orchestrating what authorities describe as the largest Ponzi scheme in the state's history. Todd Burkhalter, 55, founder and CEO of Drive Planning, was sentenced Friday to the maximum 20-year term for defrauding more than 2,000 investors out of approximately $380 million.
According to the U.S. Attorney's office in Atlanta, Burkhalter marketed two investment products between September 2020 and June 2024: the Real Estate Acceleration Loan (REAL) and the Cash Out Real Estate Fund (CORE Fund). Drive Planning pitched these as simple opportunities that did not require accredited investor status, encouraging individuals to tap retirement accounts, savings, and home equity lines of credit.
Federal prosecutors said the REAL product operated as a Ponzi scheme from its inception. The first $50,000 invested in September 2020 was largely used to repay an earlier investor, with none of the funds directed toward the promised bridge loans or real estate joint ventures. Within months, Burkhalter diverted at least $80,000 to cover his ex-wife's legal fees and recreational vehicle expenses.
The scheme continued even after the Securities and Exchange Commission began investigating in March 2024, with Burkhalter and associates soliciting tens of millions more. Investor money funded commission payments to Drive Planning agents and personal luxuries, including a $2 million yacht, a $2.1 million condo in Cabo San Lucas, $800,000 in vehicles (a 2020 Prevost Marathon motorcoach and two 2024 Land Rovers), private jet travel, and $320,000 on clothing and jewelry.
Burkhalter was also ordered to pay $233.8 million in restitution. Two other Drive Planning executives received prison sentences last week: Chief Operating Officer David Bradford, 53, got four years and three months for conspiracy to commit wire fraud, and Chief Administrative Officer Julie Edwards, 59, got two years for money laundering.
FBI Special Agent in Charge Marlo Graham noted that Burkhalter continued exploiting victims even while under federal investigation. The case underscores the ongoing threat of Ponzi schemes in the advisory industry, similar to the SEC's recent action against Goliath Ventures for a $425 million crypto fraud.
For advisors, this case serves as a reminder of the severe consequences of fraudulent investment programs. The industry has seen other enforcement actions, such as the FINRA fine against Centaurus Financial for supervision lapses, highlighting the importance of robust compliance.
The sentencing of Burkhalter and his co-defendants sends a clear message about the Department of Justice's commitment to prosecuting investment fraud. As the industry watches, the case also raises questions about due diligence and oversight in the RIA space, where similar schemes have surfaced, like the SEC lawsuit against S2A for misusing $65 million.
