The Securities and Exchange Commission (SEC) has taken action against Drive Planning LLC, an Atlanta-based company, by freezing its assets and obtaining emergency relief after accusing the company of operating a $300 million Ponzi scheme that affected over 2,000 investors. Judge Victoria Calvert of the U.S. District Court for the Northern District of Georgia issued two orders on Aug. 13 in support of the SEC’s motion for a preliminary injunction, asset freeze, and appointment of a receiver.
The SEC alleged that Drive Planning and its CEO, Russell Todd Burkhalter, misappropriated millions of dollars of investor funds meant for real estate investments. Instead, the funds were used for Ponzi-like payments and to support Burkhalter’s extravagant lifestyle. Nekia Hackworth Jones, director of the SEC’s Atlanta Regional Office, stated that the defendants deceived investors by promising high returns while operating a classic Ponzi scheme.
The SEC filed a complaint on Aug. 13, accusing Burkhalter of running the Ponzi scheme through Drive Planning LLC by selling unregistered securities known as “Real Estate Acceleration Loans” (REAL). The scheme attracted over $300 million from more than 2,000 investors by promising a 10 percent return in three months. Burkhalter and other defendants diverted the funds to make fraudulent payments and finance luxurious purchases, including a yacht, private jets, luxury cars, and a condo.
The SEC’s complaint charged Burkhalter, Drive Planning, and other defendants with violating federal securities laws’ antifraud provisions. The complaint also named Jacqueline Burkhalter, Burkhalter’s spouse, and related entities. The judge granted the SEC’s request for preliminary injunctions, including an asset freeze and receiver appointment. The SEC seeks permanent injunctions, disgorgement of profits, civil penalties, and a ban on Burkhalter serving as an officer or director of a publicly traded company.
Legal counsel for Burkhalter did not provide a comment, and the SEC’s motion for a preliminary injunction went unopposed by defense counsel.
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