Todd Burkhalter, the chief executive officer of Drive Planning LLC and author of the financial advice book "Bullet Proof Your Finances," has been sentenced to 20 years in federal prison. Burkhalter was convicted of operating a Ponzi scheme that defrauded more than 2,000 investors out of approximately $380 million.
The sentence, handed down in the Northern District of Georgia federal court, represents the maximum penalty allowed for his charges. He will serve his time without the possibility of parole. In addition to the prison term, Burkhalter was ordered to pay nearly $234 million in restitution to the victims and will be subject to three years of supervised release upon his release from prison.
Prosecutors proved that Burkhalter's company, Drive Planning LLC, marketed fraudulent investment opportunities that used money from new investors to repay earlier ones. "Todd Burkhalter lured investors to send millions of dollars to Drive Planning for investments that he knew didn’t actually exist," stated US Attorney Theodore Hertzberg. "The sentences in this case should discourage other financial advisors from choosing insatiable greed and lies over honest investment strategies."
Extravagant Lifestyle Funded by Fraud
Federal agents described Burkhalter's operation as potentially the largest Ponzi scheme in Georgia history, designed to fund an extravagant lifestyle. He is reported to have spent millions of dollars of investor funds on a yacht, multiple luxury vehicles including two 2024 Land Rovers and a 2020 Prevost Marathon motorcoach, and significant amounts on clothing, jewelry, and beauty treatments. Further expenditures included $2.1 million towards a luxury condominium in Mexico and millions more on high-end travel, such as chartering private jets.
Scheme Operations
Between September 2020 and June 2024, Burkhalter promoted two primary fake real estate investment opportunities through Drive Planning: the "Real Estate Acceleration Loan" (REAL) and the "Cash Out Real Estate Fund" (CORE Fund). He promised investors substantial returns, including 10 percent every three months for REAL and 10 percent every six months, or 22 percent annually for up to three years, for CORE Fund investments.
Prosecutors indicated that Burkhalter encouraged individuals to liquidate retirement accounts, college funds, and take out high-interest loans to invest in these schemes. He presented REAL as short-term loans to developers, claiming investments were secured by collateralized real estate. However, the collateral sheets he provided often listed properties he did not own or that did not exist. The CORE Fund falsely claimed its returns came from "100% Passive Income from Tax Liens," asserting government protection and full collateralization.
Scheme's Genesis and Investigation
According to prosecutors, the REAL fund operated as a Ponzi scheme from its inception. The initial $50,000 investment was allegedly used to pay off a previous investor. Within the first few months, at least $80,000 was reportedly used to cover legal fees for Burkhalter's ex-wife and expenses for recreational vehicles. No investor money in REAL was actually used for real estate investments as claimed.
Despite an investigation by the Securities and Exchange Commission (SEC) that began in March 2024, Drive Planning continued to solicit investments. The SEC intervened in August 2024, obtaining a temporary restraining order and filing civil enforcement actions.
Co-Defendants Sentenced
Two other former executives at Drive Planning also received prison sentences. David Bradford, the company's chief operating officer, was sentenced to four years and three months in prison and ordered to pay nearly $4.3 million in restitution after pleading guilty to conspiracy to commit wire fraud. Julie Edwards, the chief administrative officer, was sentenced to two years in prison and ordered to pay $630,000 in restitution after pleading guilty to laundering the proceeds of the scheme.
A court-appointed receiver is currently managing Drive Planning's assets in an effort to recover funds and repay the more than 2,000 victims.