Georgia advisor gets maximum – 20 years – for $400 million Ponzi

Todd Burkhalter, the founder and CEO of the Georgia-based financial advisory group Drive Planning, on Friday was sentenced to 20 years in federal prison – the maximum penalty - for orchestrating a years-long Ponzi scheme that resulted in thousands of investors losing nearly $400 million.

Burkhalter, 55, of St. Petersburg, Fla., from September 2020 to June 2024, along with Drive Planning, marketed several investment opportunities, including the “Real Estate Acceleration Loan” opportunity dubbed the “REAL,” and “Cash Out Real Estate Fund” called the “CORE Fund,” according to the Department of Justice.  

“Drive Planning claimed that investing in REAL and the CORE Fund was ‘easy and simple,’ telling prospective investors that they did not have to be accredited investors to participate and encouraging them to invest money from retirement accounts, savings, and lines of credit,” according to a statement from the U.S. Attorney’s office in Atlanta.

“Todd Burkhalter organized what is likely the largest Ponzi scheme in Georgia history to fund an extravagant lifestyle,” said Marlo Graham, Special Agent in Charge of FBI Atlanta, in the statement. “He even continued to exploit victims while under federal investigation.”

Two other Drive Planning executives, David Bradford and Julie Edwards, were also sentenced to federal prison last week.

Bradford, 53, of Peachtree Corners, Georgia, was Drive Planning’s Chief Operating Officer. He previously pleaded guilty to conspiracy to commit wire fraud for his role in the CORE Fund scheme. He was sentenced to four years and three months in prison.

Edwards, 59, of Cumming, Georgia, was Drive Planning’s Chief Administrative Officer. She previously pleaded guilty to laundering proceeds of the Ponzi scheme. She was sentenced to two years in prison.

Burkhalter was also ordered to pay $233.8 million in restitution to victims. 

Burkhalter operated REAL as a Ponzi scheme from the inception, according to the Department of Justice.

In September 2020, after Drive Planning received its first $50,000 investment in REAL, Burkhalter used at least $21,000 to repay an earlier Drive Planning investor. None of the REAL funds were used for their supposed intended purpose: to finance bridge loans or enter joint ventures with any real estate developers.

Within the first couple of months of marketing REAL, Burkhalter used at least $80,000 in investor money to pay his ex-wife’s attorneys and expenses related to recreational vehicles. 

Throughout the scheme, investors’ monies were used to pay off other Drive Planning investors, make commission payments to Drive Planning’s agents, and pay for personal expenditures, according to the Department of Justice.

Burkhalter spent approximately $2 million to purchase a yacht; $2.1 million as part of a purchase of a luxury condo in Cabo San Lucas, Mexico; $800,000 on multiple luxury vehicles, including a 2020 Prevost Marathon motorcoach and two 2024 Land Rovers; millions of dollars on luxury travel, including chartering private jets; and $320,000 on clothing, jewelry, and beauty treatments.

Even after the Securities and Exchange Commission began investigating Drive Planning in approximately March 2024, Burkhalter and others continued to solicit tens of millions of dollars in investments for REAL and the CORE Fund. Over the course of the scheme, Burkhalter defrauded more than 2,000 investors out of approximately $380 million.