ST. PETERSBURG, Fla. – The U.S. Securities and Exchange Commission (SEC) announced Wednesday that it has obtained a temporary restraining order freezing the assets of Drive Planning, LLC and its founder and CEO Russell Todd Burkhalter.
In a press release, the SEC said the measure was intended to stop a $300 million real estate Ponzi scheme that impacted more than 2,000 investors.
Defendants bought luxury apartment in St. Petersburg for $2.3 million
Drive Planning is a Georgia-based company, but the ABC Action News I-Team has learned that Burkhalter owns a related company called Drive Gulfport Properties, LLC. Drive Gulfport Properties was first licensed by the Florida Secretary of State in 2019 and is headquartered in St. Petersburg.
Pinellas County Property records show that Russell Burkhalter and his wife Jacqueline purchased a $2.3 million luxury condominium near the bay in downtown St. Petersburg in November 2023.
The SEC accuses the defendants of embezzling millions of dollars in investor funds to finance Burkhalter’s lavish lifestyle and make Ponzi-related payments.
“Drive Planning and Burkhalter gained the trust of ordinary people and encouraged them to invest in this scheme with the promise of exorbitant returns. Yet, as our complaint alleges, the defendants’ business was nothing more than a classic Ponzi scheme, using new investors’ money to pay out returns to existing investors while Burkhalter stole millions to fund a lavish lifestyle,” said Nekia Hackworth Jones, director of the SEC’s Atlanta regional office.
SEC
Jones continued, “Investors should be alert when encountering aggressive salespeople who make exaggerated sales pitches and promise high guaranteed returns.”
Raised $300 million from 2,000 investors
The SEC’s complaint alleges that Drive Planning and Burkhalter raised more than $300 million in purported real estate investments from 2020 through at least June 2024 and told investors their money would be used to finance property development projects.
Drive Planning and Burkhalter allegedly promised 10 percent interest every three months and encouraged investors to tap into their savings and retirement accounts or even open lines of credit for investments.
In the complaint, the SEC stated that the defendants did not have a business capable of generating the promised returns, but instead used investors’ funds to make Ponzi-like payments.
Yacht, private jet and limousine service
The indictment further alleges that Burkhalter stole investor money to finance his luxurious lifestyle, including buying a $3.1 million yacht and spending $4.6 million on chartering private jets and luxury cars. He also allegedly used ill-gotten gains to buy the luxury apartment in St. Petersburg.
Securities and Exchange Commission
The SEC’s complaint also names Jacqueline Burkhalter, Burkhalter’s wife, and several companies affiliated with her.
The ABC Action News I-Team called Burhalter and texted him on his cellphone, but he did not immediately respond.
If you have invested money with Burkhalter or Drive Planning, please email us at [email protected] and include your best contact information.
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