Founder of Georgia financial advisory firm sentenced to 20 years in $380M Ponzi scheme

The founder of a Georgia-based financial advisory firm was sentenced to 20 years in federal prison for orchestrating a $380 million Ponzi scheme that prosecutors say defrauded more than 2,000 investors.

Todd Burkhalter, 55, founder and CEO of Drive Planning LLC, received the maximum prison sentence allowed by law, according to the U.S. Attorney's Office for the Northern District of Georgia. 

He was also sentenced to three years of supervised release and ordered to pay more than $233.7 million in restitution.

Federal prosecutors said Burkhalter operated the years-long scheme through investment products marketed by Drive Planning, including the "Real Estate Acceleration Loan," known as REAL, and the "Cash Out Real Estate Fund," or CORE Fund.

Drive Planning marketed REAL as a bridge-loan investment that would guarantee investors a 10% return every three months. Investors were told their money would be used to provide short-term financing to real estate developers and that the investments were fully backed by real estate, prosecutors said.

But federal authorities said some of the properties listed as collateral did not exist and valuations included on so-called "collateral sheets" were fabricated.

Prosecutors said none of the money invested in REAL was actually used to finance bridge loans or joint ventures with real estate developers. Instead, investor money was used to repay earlier investors, pay commissions to Drive Planning agents and cover personal expenses.

Hertzberg said investors were encouraged to take money from retirement accounts and college funds and, in some cases, borrow money at high interest rates to invest.

Federal investigators said the scheme began in 2020. After Drive Planning received its first $50,000 REAL investment, prosecutors said at least $21,000 was used to repay an earlier investor. Within the first several months, at least $80,000 in investor money was allegedly used to pay Burkhalter's ex-wife's attorneys and expenses connected to recreational vehicles.

Burkhalter and Drive Planning continued seeking investments even after the Securities and Exchange Commission began investigating the company around March 2024, according to prosecutors. Authorities said tens of millions of additional dollars were solicited before the SEC obtained a temporary restraining order against Drive Planning in August 2024.

A court-appointed receiver is working to recover funds and sell assets in an effort to repay victims.

Two other former Drive Planning executives were also sentenced this week.

David Bradford, 53, of Peachtree Corners, the company's former chief operating officer, was sentenced to four years and three months in prison after pleading guilty to conspiracy to commit wire fraud in connection with the CORE Fund. He was ordered to pay more than $4.2 million in restitution.

Julie Edwards, 59, of Cumming, Drive Planning's former chief administrative officer, was sentenced to two years in federal prison after pleading guilty to laundering proceeds from the scheme. She was ordered to pay $630,000 in restitution.

The sentences will be served without the possibility of parole.

The FBI investigated the case with assistance from the Securities and Exchange Commission.