The U.S. Securities and Exchange Commission (SEC) has successfully obtained a preliminary injunction, asset freeze, and appointed a receiver for Atlanta-based Drive Planning LLC and its CEO, Russell Todd Burkhalter. The SEC's action aims to halt a $300 million real estate Ponzi scheme that has impacted over 2,000 investors.

According to the SEC's complaint, Drive Planning and Burkhalter raised more than $300 million from investors since 2020, promising them high returns from purported real estate investments. The defendants assured investors that their funds would be used for land development projects, offering 10% interest every three months. The complaint alleges that the defendants did not have the capability to generate the promised returns. Instead, they misappropriated millions of dollars of investor funds for personal use, including funding Burkhalter's luxurious lifestyle.

The SEC's complaint states that Burkhalter used investor funds for extravagant purchases such as a $3.1 million yacht, chartering private jets and luxury car services worth $4.6 million, and spending $2 million on a luxury condo. The defendants allegedly used new investor money to make Ponzi-like payments to existing investors, creating a classic Ponzi scheme.

The SEC's complaint charges Drive Planning and Burkhalter with violating the antifraud provisions of the federal securities laws. In addition to the emergency relief granted by the Court, which the defendants did not oppose, the SEC seeks permanent injunctions, disgorgement of ill-gotten gains with prejudgment interest, and civil penalties against the defendants. The SEC also seeks an officer-and-director bar against Burkhalter. Furthermore, Jacqueline Burkhalter, Burkhalter's spouse, and several related entities have been named as relief defendants in the complaint.

The SEC's investigation is ongoing, led by Austin Stephenson and Cody Turley under the supervision of Peter Diskin and Justin Jeffries. The SEC's litigation will be led by Pat Huddleston and H.B. Roback under the supervision of M. Graham Loomis.

The SEC's action serves as a reminder for investors to be vigilant when encountering aggressive sales pitches promising high returns. The SEC encourages investors to verify the legitimacy of investment opportunities and be cautious of guarantees of high rates of return.

In this case, the SEC's intervention has put an end to the alleged Ponzi scheme, safeguarding the interests of over 2,000 investors. The appointment of a receiver will ensure the proper management of Drive Planning's assets while the investigation continues.

As the investigation progresses, the SEC will continue to seek justice for the affected investors and hold those responsible accountable for their actions.