Financial advisor pleads guilty in Georgia Ponzi scheme that bilked investors of $380 million
The founder of a Georgia-based financial advisory group pleaded guilty to wire fraud in a Ponzi scheme that bilked more than 2,000 people out of $380 million, federal authorities announced.
Prosecutors accused 54-year-old Todd Burkhalter, the founder and CEO of Drive Planning LLC, of marketing several fraudulent investment schemes in what they say was likely the largest Ponzi scheme in Georgia's history.
According to the U.S. Attorney, one of Burkhalter's investment schemes purported to provide short-term loans to real estate developers and promised returns of 10% every three months.
Burkhalter allegedly said those investments were backed by real estate holdings, showing victims fraudulent "collateral sheets" of properties with faked values.
The Florida man encouraged investors to dip into retirement accounts and savings and take out lines of credit. Drive Planning's former chief operating officer has also pleaded guilty.
With the investment money, Burkhalter bought a $2 million yacht, a $2.1 million condo in Mexico, multiple luxury vehicles, private jets, clothing, jewelry, and beauty treatments, officials said.
"These losses will echo through the lives of these victims long after these defendants receive their well-deserved sentences," said Aaron Seres, a supervisory special agent at the Atlanta-area FBI office.
As part of a plea agreement, prosecutors plan to recommend a sentence of more than 17 years in prison for Burkhalter, U.S. Attorney for the Northern District of Georgia Theodore Hertzberg said. His sentencing hearing is scheduled for March 17.
Hertzberg said a court-appointed official is trying to recover victims' money by selling Burkhalter's assets, but it's highly unlikely that they will get back everything they lost.
The Associated Press contributed to this report.