$380 Million Ponzi Scheme: Defendant Pleads Guilty, Say Federal Authorities
Federal authorities have announced the guilty plea of a Georgia financial adviser linked to a massive Ponzi scheme. Todd Burkhalter, 54, the founder and CEO of Drive Planning LLC, pleaded guilty to wire fraud, impacting over 2,000 investors with a staggering $380 million loss.
Ponzi Scheme Details
Burkhalter crafted fraudulent investment opportunities, misleading investors into believing they would receive safe, high returns. One of his schemes promised short-term loans to real estate developers, claiming a guaranteed 10% return every three months. Prosecutors stated that these investments were falsely presented as backed by real estate assets.
Ill-Gotten Gains
- Burkhalter reportedly used investor funds to purchase:
- A $2 million yacht
- A condo in Mexico worth $2.1 million
- A luxury motorcoach
Investors were encouraged to withdraw from their retirement accounts or secure lines of credit to fund their investments. This approach left many victims in dire financial situations.
Legal Proceedings
Burkhalter is currently represented by the federal defenders’ office, although their response to inquiries after hours was not immediately available. His actions have drawn significant attention, with prosecutors indicating that former Chief Operating Officer of Drive Planning has also pleaded guilty.
U.S. Attorney Theodore Hertzberg highlighted the emotional toll on victims, stating, “These losses will echo through the lives of these victims long after these defendants receive their well-deserved sentences.”
Sentencing and Asset Recovery
As part of a plea agreement, Burkhalter faces a recommended sentence exceeding 17 years in prison. Efforts are ongoing to recover investor losses by liquidating Burkhalter’s assets. However, U.S. Attorney Hertzberg has warned that it is unlikely victims will see full restitution.
The fallout from this $380 million Ponzi scheme continues to unfold as federal authorities work to ensure justice for the affected individuals.
