The founder and CEO of an Alpharetta investment advice firm has pleaded guilty in a deal with federal prosecutors accusing him of operating Georgia’s largest Ponzi scheme.
Russell Todd Burkhalter, who goes by his middle name, pleaded guilty Wednesday to a single count of wire fraud, court records show. He was released on a $50,000 bond with conditions including that he surrenders his passport and gets permission for any new lines of credit.
U.S. Attorney Theodore Hertzberg said Burkhalter, 54, led what is likely the largest Ponzi scheme in Georgia.
“Unbelievably, Burkhalter shamelessly continued to scam his victims even while under federal investigation,” he said.
Burkhalter defrauded more than 2,000 investors out of approximately $380 million while he spent their money on his lavish lifestyle, prosecutors alleged.
They said Burkhalter’s use of investor funds on personal expenses included about $2 million on a yacht, $2.1 million on a luxury condo in Mexico, $800,000 on vehicles, millions of dollars on travel and $320,000 on clothing, jewelry and beauty treatments.
Burkhalter’s investment advice company, Drive Planning, is in receivership as part of a related civil fraud case initiated by the U.S. Securities and Exchange Commission.
Burkhalter lives in Florida but will be sentenced by a federal judge in Atlanta on a date to be determined.
As part of the plea agreement, prosecutors said they would recommend that Burkhalter be sentenced to 17½ years in prison. Judges are not bound by such agreements.
Attempts to contact Burkhalter on Thursday were not immediately successful. His appointed federal defense lawyers did not immediately respond to an inquiry.
Burkhalter’s guilty plea follows that of David Bradford, former chief operating officer of Drive Planning, who reached a deal with prosecutors in December.
Bradford, a 53-year-old Peachtree Corners resident, pleaded guilty to a single count of conspiracy to commit wire fraud. He is due to be sentenced in March.
Credit: YouTube Screenshot
Credit: YouTube Screenshot
Prosecutors said Drive Planning marketed several investment opportunities between September 2020 and June 2024 at Burkhalter’s direction, including a “Real Estate Acceleration Loan” and a “Cash Out Real Estate Fund.”
The loan opportunity was Drive Planning’s main investment vehicle and promised investors a 10% return every three months, prosecutors said. They said investors were told their property-secured money would be used by real estate developers who needed cash to complete existing projects or fund new ones.
Drive Planning staff lied to investors about the security of the loans and their ties with real estate developers, prosecutors said.
They said the separate fund opportunity promised investors a return of 10% every six months or a 22% annual return for up to three years, with government protection. Investors were told the fund provided income from tax liens.
Prosecutors said Burkhalter used investors’ money to pay other investors from 2020 onward.
The SEC began investigating Drive Planning in 2024. Through its ongoing case, a receiver is trying to recover funds and sell assets to repay investors.
About the Author
Keep Reading
The Latest
Featured
