FISHERS — The United States Securities and Exchange Commission (SEC) filed a civil lawsuit Tuesday against a Georgia-based financial company and its CEO for allegedly running a $300 million Ponzi scheme.
Drive Planning LLC has offices in Fishers, Indiana, as well as Georgia and Florida, according to their website.
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The SEC’s complaint alleges that, from 2020 through at least June 2024, Drive Planning and its CEO Russell Todd 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, according to the complaint.
As of June 2024, more than 2,000 investors had invested more than $300 million in REAL, read the lawsuit.
Patrick and Laura Mcloughlin of Noblesville thought they were investing in their future when they trusted their money with Drive Planning LLC.
Provided
“Everything sounded great,” said Patrick. “I thought I was going to get a 10-percent return every 90 days. That sounds great to me! “
Instead, they’ve likely lost $250,000.
“It is still shocking, but we kind of felt like something was going on,” said Patrick. “I feel like as things were progressing with Drive, and seeing some of the events they were hosting and the trips they were taking—we started questioning what was going on. It didn’t seem right.”
The couple says Drive Planning LLC provided statements that appeared their investments were making money.
Looking back, the statements did not seem official.
“Not everything is as good as it sounds,” said Patrick. “If it sounds too good to be true it probably is.”
The couple says they were promised their money would grow, and they’re not alone.
“Defendants encouraged people to tap their savings, their IRAs, and even lines of credit to invest in REAL,” read the lawsuit. “As of early May 2024, the scheme was receiving applications for over a million dollars every day, driven by an organization of more than 100 sales agents.”
The lawsuit says the business and its sales agents falsely told investors that Drive Planning pooled REAL investments and loaned that money out to property developers, thereby earning the profits necessary to pay returns to investors.
“In fact, Drive Planning did not have any legitimate profitable enterprise capable of generating the sums necessary to pay the promised 10 percent returns every three months,” read the lawsuit. “Instead, in class Ponzi fashion, Burkhalter used money from new investors to pay the supposed ‘returns’ to existing investors and to maintain a luxurious lifestyle.”
Drive Planning and Burkhalter spent investor funds to fund his lavish style including buying clothing, jewelry and beauty treatments including $69,293 at Diamonds Direct and $75,785 at Louis Vuitton as well as $4.6 million on chartering private jets and luxury car services, the lawsuit alleged.
Investigators also allege at least $2 million in investor funds was used to buy a $3.1 million yacht called “Stillwater” for Burkhalter.
Attorneys for Burkhalter say he denies the allegations.
“While we cannot disclose specific details about the matter, Mr. Burkhalter cooperated with the SEC in submitting the receivership and preliminary injunction orders to the Court,” read the attorney statement. “Mr. Burkhalter denies the allegations contained in the SEC’s complaint and looks forward to quickly resolving this matter.”
The court has appointed a receiver over Drive Planning, which controls the property and assets during the case.
The Mcloughins wonder what happened to their investment.
“We aren’t sure what happened to it other than him living a lavish lifestyle,” said Patrick.
WRTV Investigates called and emailed Drive Planning LLC for a response and we are waiting to hear back.
No criminal charges have been filed.
We also stopped by the Drive Planning LLC’s Fishers office and no one was there, although there were two desks inside.
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Their website says, “Get more control over your financial life by choosing an investment that aligns with your goals. Our private investments bring you the opportunity to invest in short, mid or long-term investments.”
Jacqueline Burkhalter, the Burkhalter Ranch Corporation, Drive Properties LLC, Drive Gulfport Properties LLC and TBR Supply House Inc. are also named as defendants in the lawsuit, filed in the United States District Court Northern District of Georgia Atlanta Division on August 13.
The SEC’s charges Drive Planning and Burkhalter with violating the antifraud provisions of the federal securities laws.
“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.”
If you have been impacted by Drive Planning LLC, please contact WRTV Investigates Kara Kenney at kara.kenney@wrtv.com