FISHERS — The U.S. Securities and Exchange Commission (SEC) filed a civil lawsuit Tuesday against a Georgia-based financial company and its CEO, accusing them of running a $300 million Ponzi scheme.
Drive Planning LLC has offices in Fishers, Indiana, as well as Georgia and Florida, according to the company's website.
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According to the SEC's complaint, Drive Planning and its CEO Russell Todd Burkhalter raised more than $300 million under the guise of real estate investments between 2020 and at least June 2024, telling investors the money would be used to fund land development projects.
According to the complaint, the defendants promised 10% interest every three months and encouraged investors to put their money into savings and retirement accounts and even open lines of credit.
According to the complaint, as of June 2024, more than 2,000 investors had invested more than $300 million in REAL.
When Patrick and Laura McLaughlin of Noblesville put their money into Drive Planning LLC, they thought they were investing in their future.
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“I thought everything was great,” Patrick said. “I thought I'd get 10 percent back every 90 days, which sounds great to me!”
Instead, they probably lost $250,000.
“We're still in shock, but we had a feeling something was going on,” Patrick said. “As the drive thing developed and we saw the events and trips they were hosting, we started to wonder what was going on. It just didn't seem right.”
The couple says Drive Planning LLC made statements that made it appear as though their investments were profitable.
In retrospect, it appears that the statement was not official.
“Not everything is as good as it sounds,” Patrick says. “If it sounds too good to be true, it probably is.”
The couple were promised more money, but say they're not alone in that belief.
“The defendants encouraged people to invest in REAL using their savings, IRAs and even lines of credit,” the complaint states. “As of early May 2024, the scheme was promoted by an organization of over 100 sales representatives and was receiving over $1 million in applications every day.”
According to the lawsuit, the company and its sales agents falsely represented to investors that Drive Planning had raised real investments, lent those funds to real estate developers, and earned the profits necessary to repay investors.
“In fact, Drive Planning had no legitimate profit-making business that could have earned the amounts necessary to pay the promised 10 percent returns every three months,” the complaint states. “Instead, in Ponzi scheme fashion, Burkhalter used funds obtained from new investors to pay supposed 'returns' to existing investors and support his lavish lifestyle.”
According to the complaint, Drive Planning and Burkhalter spent investors' funds on Burkhalter's lavish style, including purchasing clothing, jewelry and beauty treatments, including $69,293 from Diamond Direct and $75,785 from Louis Vuitton, as well as $4.6 million on private jet charters and luxury car services.
Investigators also allege that at least $2 million of investor funds was used to purchase a $3.1 million yacht called “Stillwater” for Burkhalter.
Burkhalter's lawyers say he denies the allegations.
“While we cannot disclose specific details about this matter, Mr. Burkhalter has cooperated with the SEC in filing petitions for the appointment of a trustee and preliminary injunction with the Court,” the lawyers' statement said. “Mr. Burkhalter denies the allegations in the SEC's complaint and looks forward to prompt resolution of this matter.”
The court appointed a receiver for Drive Planning to manage the property and assets for the duration of the litigation.
The McLogins are wondering what has become of their investment.
“I don't know what happened other than he was living a lavish lifestyle,” Patrick said.
WRTV Investigates has reached out to Drive Planning LLC by phone and email for a response and is waiting to hear back.
No criminal charges have been filed.
We also stopped by Drive Planning LLC's Fishers office, where there were two desks inside but no one was there.
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The company's website states: “Choosing investments that fit your goals gives you more control over your financial life. Our private investments offer short-, medium- and long-term investment opportunities.”
Jacqueline Burkhalter, Burkhalter Ranch Corporation, Drive Properties LLC, Drive Gulfport Properties LLC and TBR Supply House Inc. are also named as defendants in the lawsuit, which was filed Aug. 13 in the U.S. District Court for the Northern District of Georgia, Atlanta Division.
The SEC charged Drive Planning and Burkhalter with violating the anti-fraud provisions of the federal securities laws.
“Drive Planning and Burkhalter gained the public's trust and encouraged them to invest in the scheme by promising exorbitant profits, but as our complaint alleges, the defendants' business was nothing more than a classic Ponzi scheme, using new investors' funds to pay out profits to existing investors while Burkhalter stole millions to live a lavish lifestyle,” said Nekia Hackworth-Jones, Director of the SEC's Atlanta Regional Office. “Investors should be wary when they encounter aggressive sellers who make excessive sales pitches and promise high guaranteed profit rates.”
If you have been affected by Drive Planning LLC, contact Kara Kenney at WRTV Investigates at [email protected].
