The SEC accuses Russell Todd Burkhalter and his company of a $300 million Ponzi scheme

ChainCatcher news reports that, according to official news, the U.S. Securities and Exchange Commission (SEC) announced today that they have obtained a preliminary injunction, asset freeze, and other emergency relief against Atlanta Drive Planning LLC and its founder and CEO Russell Todd Burkhalter.

The SEC alleges that Drive Planning and Burkhalter raised over $300 million from more than 2,000 investors from June 2020 to June 2024 by promising high returns ("10% interest every 3 months") for so-called real estate investments. However, this was merely a typical Ponzi scheme, where they used funds from new investors to pay returns to existing investors. Additionally, the SEC alleges that Burkhalter misappropriated millions of investor funds to purchase a $3.1 million yacht, $4.6 million in private jet and luxury car services, and a $2 million luxury apartment to support his lavish lifestyle.

Nekeya Hackworth Jones, the director of the SEC's Atlanta regional office, stated that Drive Planning and Burkhalter gained the trust of ordinary investors through false promises, implementing a typical Ponzi scheme. She urged investors to be wary of sellers who overly promote high returns. In addition to obtaining emergency relief, the SEC is also seeking a permanent injunction against the defendants, the return of ill-gotten gains, and civil penalties, as well as a ban on Burkhalter from serving as an executive of any company. The case is currently under further investigation.