ATLANTA, GA — A Florida man who founded and served as chief executive officer of the Georgia-based financial advisory group Drive Planning LLC, pleaded guilty Wednesday to wire fraud for masterminding a years-long $380 million Ponzi scheme — the largest ever in the state, the U.S. Department of Justice said in a news release.

Todd Burkhalter, 54, of St. Petersburg operated the scheme, which “allowed him to live a lavish lifestyle while causing thousands of investors to lose hundreds of millions of dollars,” the DOJ said.

“[He] perpetrated what is likely the largest Ponzi scheme in Georgia history,” U.S. Attorney Theodore S. Hertzberg said. “Unbelievably, Burkhalter shamelessly continued to scam his victims even while under federal investigation. [This] guilty plea is just the first step in holding Burkhalter accountable for the considerable harm he caused.”

Find out what’s happening in St. Petefor free with the latest updates from Patch.

He stole millions from more than 2,000 victims between September 2020 and June 2024.

During this time, Drive Planning, at Burkhalter’s direction, marketed several investment opportunities, including the Real Estate Acceleration Loan opportunity (REAL) and the Cash Out Real Estate Fund (CORE Fund).

Find out what’s happening in St. Petefor free with the latest updates from Patch.

Drive Planning claimed that investing in REAL and the CORE Fund was “easy and simple,” telling prospective investors that they didn’t need to be accredited investors to participate and encouraging them to invest money from retirement accounts, savings, and lines of credit, the DOJ said.

REAL was Drive Planning’s primary investment vehicle, which Burkhalter fraudulently marketed as a bridge loan opportunity that would guarantee investors a 10 percent return every three months. The company claimed that it offered short-term loans — the bridge loans — to real estate developers who needed immediate cash flow to complete existing projects or fund new ones.

Burkhalter and Drive Planning deceived investors into believing their investments were safe by claiming that they were fully collateralized by real estate. To perpetuate these lies, he directed Drive Planning to prepare fraudulent “collateral sheets” identifying properties — some of which didn’t even exist—with fictitious valuations that purportedly served as collateral for investments, the DOJ said.

Under his direction, the company also falsely represented the extent of its relationship with real estate developers. In particular, Drive Planning highlighted its supposed relationship with a well-known real estate developer in Atlanta. In promissory notes with investors, the company falsely claimed investments were secured by real property within the developer’s portfolio of properties.

Eventually, the developer became aware that Drive Planning and Burkhalter were fraudulently using its name to promote the REAL investment and sued them.

For the CORE Fund, Drive Planning falsely claimed that it provided 100 percent passive income from tax liens, the DOJ said. The company guaranteed investors a return of 10 percent every six months or a 22 percent return per year for up to three years.

Drive Planning also misrepresented that investors’ contributions to the CORE Fund were pooled together, government-protected and fully collateralized.

Additionally, Burkhalter and others at Drive Planning didn’t tell clients that the company didn’t invest any funds in the CORE Fund after Dec. 9, 2022. In total, the company received at least $4.1 million from individuals who sought to invest in the fund.

Burkhalter operated REAL as a Ponzi-scheme from its inception, the DOJ said. In September 2020, after Drive Planning received its first $50,000 investment in REAL, he 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 real estate developers. Instead, 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, the DOJ said.

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.

Burkhalter used $2 million to buy 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, and millions of dollars on luxury travel.

Even after the Securities and Exchange Commission began investigating Drive Planning in March 2024, Burkhalter and others with the company 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.

In August 2024, the SEC obtained a temporary restraining order against Drive Planning and filed civil enforcement actions in federal court against Drive Planning and others related to the above-described scheme.

A court-appointed receiver will work to recover funds and sell assets to repay the company’s victims.

Burkhalter’s sentencing hasn’t been scheduled. In his plea agreement, the government has conditionally promised to recommend that the court sentence him to 17-and-a-half years of imprisonment.

David Bradford, the former chief operating officer of Drive Planning, pleaded guilty to conspiracy to commit wire fraud on Dec. 16. His sentencing will take place March 17.

See Also:

Get more local news delivered straight to your inbox. Sign up for free Patch newsletters and alerts.