The Securities and Exchange Commission (SEC) allege a real estate investment company operating in numerous U.S. states was actually an elaborate ponzi scheme to fund CEO’s lavish lifestyle.
A Georgia headquartered real estate investment company is being sued by the SEC for running a $300 Million scheme which saw investors defrauded.
Under Investigation for Four Years
Drive Planning LLC which operates in at least three American states including Georgia, Florida and Indiana was under investigation for four years before the lawsuit.
The investment company is said to have collected over $300 Million during the period 4 years between 2020 to 2024.
Th money raised by investors was supposedly being used to fund land development projects which the company would then use to pay back investors.
Fund the CEO’s Lavish Lifestyle
However the SEC alleges that instead of using the funds for real estate projects instead Drive Planning LLC used the money to fund the CEO’s lavish lifestyle.
The courts heard how CEO Todd Russel Burkhalter and his Drive Planning team, defrauded more than 2000 investors out of hundreds of millions of dollar in supposed real estate projects.
In order to entice as many investors as possible, the defendants promised a strong return on investment (ROI) which included a minimum 10% return every quarter.
Investors were pushed to invest as much as possible, including nest eggs, retirements savings, college funds, and even taking on extra debt to fund the investment.
Lost their Life Savings
Most investors were tapped for as much money as possible, leaving them to depend on the investment return which simply never materialized.
Many of those who were defrauded were regular people including married couples looking to invest for the future.
One couple, the Mcloughlin’s of Noblesville lost their life savings which totalled $250,000 that they were saving for thier retirement.
Like many they lost their nest egg expecting it to be a money maker, instead it turned out to be one of the biggest losses of their lives.
Did Not Appear Legitimate
The couple said they became suspicious when things did not add up including their investment statement which they felt did not appear legitimate.
They grew more concerned when they heard about the company’s lavish trips and events they held to recruit more investors.
The lawsuit contends that by May 2024 the fraud scheme was receiving applications for more than a million US Dollars every single day,
Driven by Drive Planning LLC’s massive sales team which by 2024 had already reached to a 100 sales agents and growing.
The court heard how sales agents would sell the real estate investment product to its victims using a sales process that would promote the investment return.
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Promoting the Company’s Partnership
Sales agents would draw in investor victims by promoting the company’s partnership with real estate developers.
Funds invested into Drive Planning LLC were to be used to fund developer’s real estate projects and the projects would generate the return on investment.
However the investigation brought to light no such relationship that Drive Planning LLC had with real estate developers to generate the amount of profits needed to payback investors.
Investments Were Siphoned
Rather, like all ponzi fraud schemes the lawsuit explained how the early investors were paid with later investor’s funds.
While portions of the investments were siphoned from the company to fund an extravagant lifestyle for the CEO.
According to the lawsuit the CEO Burkhalter used funds to buy expensive clothes, jewelry, and diamonds.
The CEO also spent millions of investor funds of luxurious travel including trips to exotic places, chartered Jets, and even the purchase of a multi-million dollar yacht called “Stillwater”.
No Criminal Charges Have Been Filed
Outside of the lawsuit no criminal charges have been filed as attorneys for the company and CEO claim it is just a misunderstanding that will be cleared up.
“While we cannot disclose specific details about the matter, Mr. Burkhalter cooperated with the SEC in submitting the receivership and preliminary injunction orders to the Court, Mr. Burkhalter denies the allegations contained in the SEC’s complaint and looks forward to quickly resolving this matter.” – Attorneys representing Drive Planning LLC.
Many of the defrauded investors are wondering if their investments are lost permanently or if the lawsuit will help to recover some of the funds.
Also Named As Defendants
Drive Planning LLC and CEO Burkhalter are not the only parties named in the lawsuit as other collaborators have been identified.
Jacqueline Burkhalter, the Burkhalter Ranch Corporation, Drive Properties LLC, Drive Gulfport Properties LLC and TBR Supply House Inc. are also named as defendants in the lawsuit.
The lawsuit has been filed in the United States District Court Northern District of Georgia Atlanta Division on August 13, 2024.
