The U.S. Securities and Exchange Commission (SEC) has taken legal action against Russell Todd Burkhalter and his company, Drive Planning, alleging they orchestrated a Ponzi scheme that swindled over $300 million from thousands of unsuspecting investors. In an effort to freeze their assets, the SEC has obtained a preliminary injunction based on what they claim were fraudulent activities beginning in mid-2020.

Burkhalter, an author with extensive experience in metro Atlanta's financial industry, served as the founder and CEO of Drive Planning. As of the time of writing, messages left by The Atlanta Journal-Constitution for Burkhalter via phone, text, and email have not been returned.

According to the 40-page civil complaint, Burkhalter's actions included the purchase of a multimillion-dollar yacht, luxury jewelry, designer clothing, high-end bags, global vacations, and even the acquisition of a ranch in Mineral Bluff, located in the North Georgia Mountains. The SEC's lawsuit was recently filed in the U.S. District Court for the Northern District of Georgia, as announced by Nekia Hackworth Jones, the director of the SEC's regional office in Atlanta.

Jones stated, "Drive Planning and Burkhalter gained the trust of everyday people and encouraged them to invest in this scheme by promising exorbitant returns, but... the defendants' business was nothing more than a classic Ponzi scheme."

In 2020, Burkhalter introduced what was marketed as a "bridge loan opportunity" called REAL, an acronym for Real Estate Acceleration Loan, according to the SEC's complaint. This investment was promoted as a real estate venture for various development projects, with investors being enticed to tap into their savings, retirement accounts, or even open lines of credit. In return, investors were promised 10% interest every three months.

However, the SEC's lawsuit asserts that Burkhalter and Drive Planning did not possess a viable business capable of generating the promised returns. Instead, the "returns" paid to investors were funded by redirecting money from other unsuspecting investors. Existing investors were encouraged to "roll over" their returns, essentially reinvesting them.

Moreover, a significant portion of the funds were diverted for Burkhalter's personal use, financing his lavish lifestyle, which included the purchase of a $3.1 million yacht, chartering private jets costing $4.6 million, luxury car services, and the acquisition of a $2 million condo.

According to the complaint, investor money was also used for sponsoring a racecar, paying for advertisements at Tampa's Tropicana Field, home of the Tampa Bay Rays in Major League Baseball, among other expenses.

Drive Planning employed some staff members, but the majority of the efforts to attract investors came from sales agents who received a 4% commission on each investment they sold, as outlined in the complaint.

The SEC's investigation revealed that Drive Planning had raised over $336 million, with $66.9 million coming from retirement accounts, as of May 6, 2024. The money was obtained from over 2,000 investors. According to the complaint, Drive Planning has paid out approximately $131 million in purported returns to investors, leaving a balance owed to them of $287 million as of May 6, 2024.

Over 2,000 individuals invested in Drive Planning or other related schemes, according to the SEC's findings.

In response to the situation, attorney Jeffrey Sonn, who represents some Drive Planning investors, expressed their intention to seek justice for those affected by the alleged Ponzi scheme. Sonn stated, "Those who committed, aided or abetted in this Ponzi scheme should be held accountable, civilly and criminally, and we look forward to seeking justice."

The SEC has requested the court to permanently prohibit Burkhalter and Drive Planning from engaging in the questioned business practices, as well as to order the repayment of wrongfully obtained funds and impose civil penalties.

Burkhalter, who goes by his middle name, has also been involved in North Fulton County politics, including an unsuccessful run for Johns Creek City Council. Among the books authored by Burkhalter is "Bulletproof Your Finances: Confidence In Creating Financial Security."

Additionally, Burkhalter's wife, Jacqueline Burkhalter, who resides in Blue Ridge, was named in the lawsuit as Drive Planning's chief financial officer. However, she was designated by the SEC as a "relief defendant," indicating her involvement in the alleged illegal gains but not charging her with wrongdoing. A message left with Jacqueline Burkhalter has not been returned as of the time of writing.