Todd Burkhalter, the founder and CEO of Georgia-based financial advisory firm Drive Planning LLC, has been sentenced to 20 years in federal prison for orchestrating what prosecutors say is likely the largest Ponzi scheme in Georgia history. U.S. District Judge Tiffany R. Johnson handed down the maximum allowed prison term Friday after Burkhalter pleaded guilty in January to wire fraud charges. The sentence far exceeded what federal prosecutors had recommended, signaling the judge’s determination to punish what she called his “despicable” conduct.
The scheme defrauded more than 2,000 investors of approximately $380 million between September 2020 and June 2024. U.S. Attorney Theodore S. Hertzberg described Burkhalter’s tactics as ruthless and exploitative. “He promised investors that they were guaranteed substantial returns on their investments, and he ruthlessly encouraged them to deplete their kids’ college funds, take early distributions from retirement accounts, and borrow significant sums at high interest rates,” Hertzberg said.
Burkhalter lured investors with two primary investment vehicles. The “Real Estate Acceleration Loan” program, known as REAL, was marketed as a short-term bridge loan opportunity guaranteeing a 10 percent return every three months. The “Cash Out Real Estate Fund,” referred to as the CORE Fund, was pitched as providing guaranteed returns from tax liens on real estate. Drive Planning told investors both opportunities were “easy and simple” and that they did not need to be accredited investors to participate.
In reality, the investments did not exist as promised. Burkhalter directed the company to prepare fraudulent collateral sheets identifying properties, some of which did not even exist, with fictitious valuations. The scheme eventually collapsed when the Securities and Exchange Commission began investigating Drive Planning in March 2024. Even after the SEC launched its investigation, Burkhalter continued soliciting tens of millions of dollars from unsuspecting investors until the company was shut down in June 2024.
The extent of Burkhalter’s personal enrichment during the scheme was staggering. He spent approximately $2 million to purchase a yacht that he renamed “Live More,” after originally calling it “Stillwater.” He spent $2.1 million toward the purchase of a luxury condominium in Cabo San Lucas, Mexico. Burkhalter dropped $800,000 on multiple luxury vehicles, including a 2020 Prevost Marathon motorcoach worth approximately $614,000 and two 2024 Land Rovers. He charged millions of dollars to luxury travel expenses, including chartering private jets, and spent at least $320,000 on clothing, jewelry, and beauty treatments. He also directed approximately $800,000 in payments to his ex-wife’s attorneys.
Judge Johnson emphasized the gravity of the victims’ losses when explaining her decision to impose the maximum sentence. She noted that many investors had lost their retirement savings and children’s college funds, with some forced to remortgage their homes. “It was almost difficult to physically read all the victim impact statements in this case, because there were so many people who were devastated,” the judge said. She stressed that many victims would probably never recover their losses in full.
Burkhalter will serve 20 years in federal prison followed by three years of supervised release. He was ordered to pay $233,777,763.82 in restitution to victims. With parole effectively abolished for federal offenders under the Sentencing Reform Act since 1987, Burkhalter will be required to serve the vast majority of his sentence.
Two other Drive Planning executives were sentenced earlier in the week. David Bradford, 53, the company’s chief operating officer, pleaded guilty to conspiracy to commit wire fraud for his role in the CORE Fund scheme. Bradford, a pastor from Peachtree Corners, received a four-year and three-month prison sentence. At his sentencing, Bradford told the court, “I was a coward. I participated in that fraud and I benefited from it, and there’s no excuse for what I did. I deceived myself and in turn, I deceived the people who trusted me.” He was ordered to pay $4,297,878.16 in restitution. Many of his victims were people he met through his church.
Julie Edwards, 59, the company’s chief administrative officer, pleaded guilty to money laundering. She received a two-year prison sentence and was ordered to pay $630,000 in restitution. Edwards had used approximately $630,000 of investor funds to purchase a home in Cumming, Georgia, which she was forced to vacate. The court-appointed receiver for the company has taken control of the property as part of civil enforcement actions.
All three defendants will serve their sentences without the possibility of parole and will be subject to three years of supervised release upon completion of their prison terms. A court-appointed receiver, Kenneth D. Murena, has been tasked with attempting to recover remaining funds and sell assets to provide whatever restitution is possible to the thousands of victims who lost their life savings in the scheme.