Georgia Ponzi Schemer Sentenced To 20 Years For $380 Million Fraud

Aug 15, 2026 11:47 PM - 1 hour ago 1

Todd Burkhalter the CEO of Georgia-based financial advisory group Drive Planning LLC was sentenced connected August 14th to 20 years successful situation by U.S. District Court Judge Tiffany Johnson connected charges related to his orchestrating the largest Ponzi strategy successful Georgia history done which he scammed much than 2,000 investors retired of astir $380 million. Judge Johnson rejected the U.S. Attorney’s plea-bargained proposal of a 17 ½ twelvemonth situation sentence. The 20-year condemnation was the maximum condemnation that Judge Johnson could person imposed and pinch parole efficaciously abolished for national criminal offenses pursuant to the Sentencing and Reform Act since 1987, Burkhalter will beryllium required to service the bulk of his condemnation pinch only a constricted number of “good conduct” credits to trim the existent clip to beryllium served. Burkhalter was besides ordered to service 3 years of supervised merchandise pursuing the completion of his situation condemnation arsenic good arsenic salary $233.7 cardinal successful restitution.

Explaining her refusal to judge the government’s proposal and alternatively imposing the maximum condemnation allowed, Judge Johnson characterized Burkhalter’s behaviour arsenic “despicable” and emphasized the bonzer harm described successful the galore victims’ effect statements, stressing that galore of the victims of Burkhalter’s Ponzi strategy were improbable ever to afloat retrieve their devastating losses.

Earlier successful the week Judge Johnson sentenced 2 different Drive Planning employees, Chief Operating Officer David Bradford and Chief Administrative Officer Julie Edwards. At his sentencing, Bradford, a religion pastor told the court, “I was a coward. I participated successful that fraud and benefited from it, and there’s nary excuse for what I did. I deceived myself and successful turn, I deceived the group who trusted me.”

In sentencing Bradford to a four-year three-month situation term, Judge Johnson recognized his remorse but besides noted that he had defrauded thousands of group including galore he met done his religion affiliation. Contributing to his lighter condemnation was his practice pinch rule enforcement successful the investigation of the crimes and his swift blameworthy plea which led to the later blameworthy pleas of some Burkhalter and Julie Edwards who received a two-year situation condemnation for her lesser domiciled successful the Ponzi scheme.

THE PONZI SCHEME

Between September of 2020 and June of 2024 Burkhalter operated 2 finance programs known arsenic the “Real Estate Acceleration Loan” programme (REAL) and the “Cash Out Real Estate Fund (Core Fund). Burkhalter told prospective investors successful the REAL programme that it offered short-term span loans to existent property developers successful request of contiguous rate to complete existing projects aliases money caller ones. REAL investors were promised a guaranteed 10% return connected finance each 3 months. Burkhalter told investors that the investments were wholly safe and collateralized by existent estate, moreover creating clone “collateral sheets” describing the properties, immoderate of which were wholly fictional.

Burkhalter claimed that the CORE Fund provided 100% passive income from taxation liens, guaranteeing investors a 10% return each six months aliases a 22% return per twelvemonth for up to 3 years, falsely claiming that the money pooled investors’ costs successful authorities protected and afloat collateralized investments.

The truth is that it was each an elaborate Ponzi scheme. Burkhalter utilized investors’ money to salary earlier investors, salary commissions to his trading agents and money his luxurious manner that included a $2 cardinal yacht, a luxury condominium successful Cabo San Lucas, Mexico, $800,00 connected luxury vehicles, $320,000 connected clothing, jewelry and beauty treatments, millions connected luxury recreation including chartering backstage jets and $80,000 which he utilized to salary his ex-wife’s lawyers.

Even aft the SEC began an first civilian investigation successful March of 2024 Burkhalter brazenly continued to run his Ponzi strategy until June. In August the SEC obtained a impermanent restraining bid shutting down Drive Planning LLC. The criminal charges for which he has now been sentenced followed thereafter.

HOW COULD INVESTORS HAVE AVOIDED BEING SCAMMED

As pinch galore Ponzi schemes, location were galore reddish flags successful Burkhalter’s Ponzi strategy including, astir notably, unrealistic guaranteed precocious returns connected investments.

In addition, nary 1 should ever put successful thing they do not afloat understand nor put pinch anyone without doing investigation connected the personification offering the investment. FINRA (Financial Industry Regulatory Authority) is simply a private, non-profit statement that acts arsenic a regulatory watchdog of the finance brokerage business nether the oversight of the SEC. It operates a Central Registration Depository that will show you if a agent you are considering investing pinch is licensed and if location person been disciplinary procedures against him aliases her. You tin besides cheque pinch your ain state's securities regularisation agency for akin information. Many finance advisers will not beryllium required to registry pinch the SEC but are required to registry pinch your individual authorities securities regulators. You tin find your state's agency by going to the website of the North American Securities Administrators.

Although Burkhalter had antecedently been a registered finance advisor, he had not been registered pinch either the SEC aliases FINRA since 2014, six years anterior to erstwhile he started his Ponzi scheme.

Having the aforesaid personification counsel an finance and power the finance is simply a communal thread among Ponzi schemers because it enables them to falsify documents to make the finance look profitable. Generally, for further information it is desirable to person a abstracted broker-dealer aliases third-party enactment arsenic custodian for investments chosen by an finance adviser.

Finally, earlier investing, particularly successful different investments specified arsenic were presented here, it is prudent to person the archiving reviewed by either an independent financial advisor, CPA aliases securities lawyer. A elemental investigation would person recovered that neither REAL nor the CORE Fund were decently registered investments pinch the SEC and were being marketed illegally.