The complaint details that from 2020 through at least June of 2024, Burkhalter engaged in selling unregistered securities through Drive Planning. Called “Real Estate Acceleration Loans,” or REAL, they promised investors “bridge loan opportunity promising 10% in 3 months.” More than 2,000 investors had over $300 million invested in REALs as of June 2024.
Burkhalter encouraged investors to obtain investment funds for REAL through their IRAs, savings and lines of credit to continue investing. With more than 100 sales agents, the company received applications for $1m daily as late as May 2024. Burkhalter and these agents continued to tell investors that the funds were pooled and loaned to property developers or enter joint ventures with property developers. This allegedly allowed the company to recognize a profit, which was used to pay “dividends” to the investors.
But the “investment” was nothing more than a Ponzi scheme, with investors being paid their “dividends” from incoming funds. Instead, Burkhalter “maintained a luxurious lifestyle,” which was detailed in the complaint. Also mentioned was Burkhalter’s now-ex-wife, since she was married to him while he operated the Ponzi scheme. Additionally, several other entities were included in the petition as relief defendants so that other gains could be subject to disgorgement.
Burkhalter had had signatory control over several bank accounts holding millions in investor funds. The SEC was concerned that he had recently entered a divorce settlement, some of the investor funds would be transferred to his ex-wife. This is why the SEC requested an asset freeze and a receiver in the complaint to preserve and protect the remaining investor assets and prevent them from dissipating.
Did You Invest With Todd Burkhalter And Drive Planning?
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