ST. PETERSBURG, Fla. — The Securities and Exchange Commission announced Wednesday that it obtained a preliminary injunction and will freeze the assets of Drive Planning, LLC and its founder and CEO, Russell Todd Burkhalter.
A press release from the SEC said the action is intended to halt a $300 million real estate Ponzi scheme impacting more than 2,000 investors.
Defendants bought $2.3 million luxury condo in St. Petersburg
Drive Planning is a Georgia-based company, but the ABC Action News I-Team has learned Burkhalter owns a related company called Drive Gulfport Properties, LLC. Drive Gulfport Properties was first licensed with the Florida Secretary of State in 2019 and is headquartered in St. Petersburg.
Pinellas County Property real estate records show Russell Burkhalter and his wife Jacqueline purchased a $2.3 million luxury condominium near the bayfront in downtown St. Petersburg in November 2023.
The SEC alleges the defendants misappropriated millions of dollars of investor funds to fund Burkhalter’s lavish lifestyle and to make Ponzi-like payments.
“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.
Jones continued, “Investors should be vigilant when they encounter aggressive sellers who make over-the-top sales pitches and promise high rates of guaranteed returns.”
$300 million raised from 2,000 investors
The SEC’s complaint alleges that, from 2020 through at least June 2024, Drive Planning and Burkhalter raised more than $300 million for purported real estate investments, telling investors their money would be used to fund land development projects.
Drive Planning and Burkhalter allegedly promised 10% interest every three months and encouraged investors to tap their savings and retirement accounts and even open lines of credit to invest.
The SEC said in the complaint that the defendants did not have a business capable of generating the promised returns and instead used investor funds to make Ponzi-like payments.
Yacht, private jets, and limo service
The complaint further alleges that Burkhalter stole investor funds to fund his luxurious lifestyle, including buying a $3.1 million yacht and spending $4.6 million on chartering private jets and luxury car services. He also allegedly used ill-gotten gains to purchase the St. Petersburg luxury condo.
The SEC complaint also names Jacqueline Burkhalter, Burkhalter’s spouse, and several related entities.
The ABC Action News I-Team called and texted Burhalter on his cell phone, but he did not immediately respond.
If you have invested money with Burkhalter or Drive Planning, please email us at adam@abcactionnews.com and provide your best contact information.
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