The Law of the Financial Markets from Top Securities LawyersFriday, September 20, 2024
SEC Charges Russell Todd Burkhalter and His Atlanta-Based Firm With $300 Million Ponzi Scheme and Obtains Emergency Relief
SEC Halts Alleged $300 Million Ponzi Scheme by Drive Planning LLC and CEO Russell Todd Burkhalter
The Securities and Exchange Commission (SEC) has obtained a preliminary injunction and asset freeze against Atlanta-based Drive Planning LLC and its founder and CEO, Russell Todd Burkhalter, to stop a $300 million real estate Ponzi scheme affecting over 2,000 investors.
Alleged Misappropriation of Investor Funds
The SEC alleges that Burkhalter misused investor funds to finance his lavish lifestyle, including purchasing a $3.1 million yacht, chartering private jets, and buying a luxury condo.
Ponzi Scheme Allegations
The complaint alleges that Drive Planning and Burkhalter promised investors 10% interest every 3 months for purported real estate investments but instead used new investor money to pay existing investors, with no actual business generating the promised returns.
SEC Charges and Relief
The SEC charges Drive Planning and Burkhalter with violating federal securities laws and seeks permanent injunctions, disgorgement of ill-gotten gains, civil penalties, and an officer-and-director bar against Burkhalter.
Related Entities and Individuals
The complaint also names Burkhalter’s spouse, Jacqueline, and related entities as relief defendants, seeking disgorgement of ill-gotten gains.
Editor’s Note: Readers are reminded that the SEC often over-charges, and ultimately backs away once a target mounts a defense. Unless the release indicates that the respondent has settled the charges, these are the SEC’s allegations, not evidence of wrongdoing. The respondent has not yet had the opportunity to present evidence or to counter the allegations contained in the SEC Press Release.
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