SEC Charges Russell Todd Burkhalter and His Atlanta-Based Firm With $300 Million Ponzi Scheme and Obtains Emergency Relief
Featured News, Featured Stories, News August 15, 2024
Burkhalter allegedly stole investor funds to buy a $3.1 million yacht and fund a lavish lifestyle. According to public Georgia records, Burkhalter owns multiple properties in Fannin County, Georgia.
Washington D.C., Aug. 14, 2024 —
The Securities and Exchange Commission today announced that it obtained a preliminary injunction, asset freeze, and other emergency relief against Atlanta-based Drive Planning LLC and its founder and CEO, Russell Todd Burkhalter, to halt a $300 million real estate Ponzi scheme impacting more than 2,000 investors. Additionally, a receiver was appointed over Drive Planning. The SEC alleges the defendants misappropriated millions of dollars of investor funds to fund Burkhalter’s lavish lifestyle and to make Ponzi-like payments.
“Drive Planning and Burkhalter gained the trust of everyday people and encouraged them to invest in this scheme by promising exorbitant returns, but as our complaint alleges, the defendants’ business was nothing more than a classic Ponzi scheme, using new investor money to pay returns to existing investors, with Burkhalter stealing millions to fund a lavish lifestyle,” said Nekia Hackworth Jones, Director of the SEC’s Atlanta Regional Office. “Investors should be vigilant when they encounter aggressive sellers who make over-the-top sales pitches and promise high rates of guaranteed returns.”
The SEC’s complaint alleges that, from 2020 through at least June 2024, Drive Planning and Burkhalter raised more than $300 million for purported real estate investments, telling investors their money would be used to fund land development projects. The defendants promised 10% interest every 3 months and encouraged investors to tap their savings, retirement accounts, and even open lines of credit to invest. In reality, the defendants did not have a business capable of generating the promised returns, and they instead used investor funds to make Ponzi-like payments, according to the complaint. The complaint further alleges that Burkhalter stole investor funds to fund his luxurious lifestyle, including to buy a $3.1 million yacht and spending $4.6 million on chartering private jets and luxury car services and $2 million on a luxury condo. 
The SEC’s complaint, filed in the U.S. District Court for the Northern District of Georgia, charges Drive Planning and Burkhalter with violating the antifraud provisions of the federal securities laws. In addition to the emergency relief granted by the Court, which the defendants did not oppose, the SEC seeks permanent injunctions, disgorgement of ill-gotten gains with prejudgment interest, and civil penalties against the defendants, and an officer-and-director bar against Burkhalter. The complaint also names Jacqueline Burkhalter, Burkhalter’s spouse, and several related entities as relief defendants and seeks disgorgement of ill-gotten gains from them.
The SEC’s ongoing investigation is being conducted by Austin Stephenson and Cody Turley, under the supervision of Peter Diskin and Justin Jeffries, of the SEC’s Atlanta Regional Office. The SEC’s litigation will be led by Pat Huddleston and H.B. Roback, under the supervision of M. Graham Loomis.
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Sports talk Thursday with Lauren Hunter- Thank a coach!
Sports, TeamFYNSports July 25, 2019
Over the last week and a half BKP and I have been going from school to school interviewing head football coaches for our North Georgia Coaching Series. Now if any of y’all know BKP, you’ll know what I mean when I say that he’s been doing most of the talking and I’ve been doing most of the observing. But this doesn’t bother me, it gives me a chance to learn more about the programs I’ll be spending a lot of time with this fall.
With that being said, there’s one thing in particular I’ve been noticing in our interviews, and that’s how much these coaches truly care about their players and their programs.
Now me saying that might make some of y’all think, “Well, duh. That’s what they’re supposed to do.” Well, maybe. But I like to think I’m pretty good at picking up when someone is just putting on an act for appearances. And I can say with all sincerity that none of these coaches are doing that.
Obviously when BKP and I go into these interviews, he asks questions about what the teams have been doing during the summer and how they’re planning to prepare for the regular season. But he also asks the coaches if they can highlight a few players that have really stood out. This point in the interview, I believe, is where a coach who didn’t care would possibly just say a couple names and move on.
But these coaches not only name the players, they tell us about why they stand out. And it’s a sign of the hard work of these athletes, but there’s also a sense of pride from these coaches as they name them. A couple of coaches have mentioned that it’s hard to name just a few, because all of their players have worked hard. And it’s not that the rest of the team doesn’t matter or that they don’t care about them, but the ones that they mention they do so without hesitation because they’ve been there with them through the summer truly coaching them. There’s no so-so about the commitment these coaches make- they’re all in.
Another thing that has amazed me about these coaches, not just in the interviews but learning about them off the field, is how much they care about their community as well. A couple of them, such as Chad Cheatham at Fannin County and Chad McClure at Hayesville, are natives to their communities. It’s home to them, and they’re not going to be just halfway in their commitments to their programs.
When Coach Caleb Sorrells of the Lumpkin County Indians was first named as head coach, the school hosted a meet and greet for him. It was one of the first stories I covered in this position.
In his address to the parents, Sorrells promised to not only invest in the team as players and athletes, but as men who would one day be employees and fathers. I remember being caught off guard at first because I was expecting him to talk about plans for the future of the program, the summer schedule and what not. He did talk about these things, but I believe by telling the parents that he was going to invest in the players as men showed that it was going to be a priority.
Although I know more about the commitment that Sorrells has made because I’m positioned in Lumpkin County, he’s not the only one in the area who gets involved in the community and works to build up the athletes’ character.
Tim Cokely with the White County Warriors has an entire wall of his office decorated with signs of good character qualities to instill in the team. Chad Cheatham, who I mentioned earlier, referees basketball in the football off-season just because, and the community loves him for it. I’m sure that many of the other coaches in the area do similar things and I just don’t know about it yet.
These are commitments that we see played out by coaches in movies and don’t always think to look for in real life. And because I grew up in Gwinnett County, population one million, if there was this sort of commitment by coaches I didn’t always see it because there were so many people. I love living up here in North Georgia in a smaller community where an act of kindness, especially where sports are concerned, rarely goes unnoticed.
We think about football as a sport that instills a since of discipline, but why is that? Because there’s a coach that sets that standard and inspires the team to do the same. As a community we love football and we love our team, and we can thank a coach for that.