Hundreds of purchasers trusted Todd Burkhalter to speculate their cash in high-yielding actual property loans. In actuality, Burkhalter was working a large Ponzi scheme whereas splurging on motorcoaches and holidays in Mexico.
These lies got here to mild in January 2026 when Burkhalter pleaded responsible to wire fraud by means of his Atlanta-based firm Drive Planning LLC. With a complete of $380 million from 2,000 purchasers, the U.S. Legal professional Theodore S. Hertzberg estimates that is “seemingly the biggest Ponzi scheme in Georgia historical past.”
Burkhalter’s multi-year rip-off centered on two merchandise that his enterprise, Drive Planning, marketed between September 2020 and June 2024. The primary, referred to as the “Actual Property Acceleration Mortgage” alternative (“REAL”), claimed to put money into short-term loans to actual property builders and provide returns of 10% each three months.
Drive Planning’s second fraudulent providing was referred to as the “Money Out Actual Property Fund” (“CORE Fund”), which falsely claimed to put money into tax liens to supply returns of 10% each six months.
Any cash Todd Burkhalter acquired from these funds went to repay different buyers or for lavish private purchases, together with $2 million on a yacht, $2.1 million on a rental in Cabo San Lucas, Mexico, and lots of of 1000’s of {dollars} on luxurious automobiles, jewellery, and garments.
In accordance with the U.S. Legal professional’s Workplace Northern District of Georgia, Burkhalter may face greater than 17 years in jail for his crimes.
For the victims of the scheme, there isn’t a lot hope of recovering all of their cash. Though a court-appointed receiver will promote Drive Planning’s property and redistribute funds, it seemingly gained’t be sufficient to cowl everybody’s investments (1).
Of the $12.5 billion misplaced to fraud in 2024, the Federal Commerce Fee (FTC) discovered that $5.7 billion was attributable to misleading funding offers like Drive Planning. Not solely are fraudulent investments the main reason behind misplaced funds in these circumstances, the FTC notes that’s a rise of 24% from 2023 information (2).
Analysis from Emory College in 2015 lately uncovered the probably targets of Ponzi schemes — and it’s not the ultra-wealthy. In accordance with this information, three teams are typically most liable to falling into these traps: the aged, affinity teams (e.g., spiritual or skilled associations), and household or pals of the victims. Roughly 46% of Ponzi schemes examined on this examine concerned victims who have been aged or had ties to a gaggle (3).
Wanting into the small print of Drive Planning’s advertising and marketing, it’s straightforward to see this reference to its calls to retirees and people nearing retirement.
Drive Planning intentionally inspired individuals to make use of cash from their retirement accounts, financial savings, and even strains of credit score to benefit from their “straightforward and easy” investments.
Drive Planning additionally labored arduous to construct belief by creating faux paperwork that appeared professional.
For instance, Burkhalter despatched “collateral sheets” stuffed with rigorously crafted — however fully made-up — particulars in regards to the properties they allegedly held to supply larger safety.
Drive Planning additionally claimed to be working with an actual property developer in Georgia, regardless that the 2 firms didn’t have a relationship, and the developer finally sued (1).
With such subtle documentation, it’s comprehensible why so many discover it arduous to inform the distinction between real funding alternatives and fraudulent schemes. However there are a number of warning indicators everybody may be careful for earlier than transferring their funds.
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If it’s too good to be true, it most likely is. Though that’s clichéd recommendation, it’s nonetheless price protecting in thoughts when trying by means of funding alternatives.
Fraudulent investments typically succeed as a result of they’re rigorously crafted to look secure and bonafide whereas providing above-average returns. One of the vital widespread methods Ponzi schemes do that is by providing assured or unusually constant yields, like the ten% returns Drive Planning promised.
All investments carry some draw back threat, nevertheless it’s typically greater when marketed charges of return are unusually excessive. If the projected yields are above what’s at present supplied in conservative investments like high-yield financial savings accounts or Certificates of Deposit (CDs), be additional suspicious if there’s no point out of the volatility that comes together with that.
Transparency is important when evaluating totally different funding platforms or companions. It shouldn’t be arduous to seek out somebody who claims to be a licensed monetary skilled. You should utilize a device like Dealer Examine to look them up (4). Monetary merchandise on the market as investments will be present in databases just like the federal authorities’s EDGAR (5). Typically, funding companies shouldn’t disguise how they generate profits in a bunch of obscure and sophisticated language.
Be additional cautious if an funding agency emphasizes exclusivity or creates a way of urgency, as a result of these are widespread ways to cease individuals from asking too many questions so that they act on their feelings as a substitute.
And keep in mind that Ponzi schemes ceaselessly goal the aged or individuals with ties to a spiritual or cultural group. Anybody in these classes must be additional skeptical about any potential funding alternatives they run throughout.
Since recovering cash from a Ponzi scheme is tough and gradual, it’s greatest to keep away from the difficulty upfront by asking loads of direct questions and bringing within the assist of trusted third events like a impartial monetary advisor earlier than making massive choices.
And should you ever suspect funding fraud or have points withdrawing funds, cease sending cash instantly and make contact with regulators just like the FTC (6).
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We rely solely on vetted sources and credible third-party reporting. For particulars, see our editorial ethics and tips.
U.S. Legal professional’s Workplace, Northern District of Georgia (1); Federal Commerce Fee (2, 6); Emory College (3); Dealer Examine (4); Investor.gov (5)
This text supplies info solely and shouldn’t be construed as recommendation. It’s offered with out guarantee of any sort.
