On August 15, a United States district court in Georgia granted the U.S. Security and Exchanges Commission (SEC) a temporary injunction, asset freeze, and other emergency relief against businessman Russell Todd Burkhalter. The SEC claims that Burkhalter, the founder and CEO of Atlanta, Georgia-based Drive Planning, LLC, was the mastermind behind a Ponzi scheme that defrauded 2,000 investors out of over $300 million to fund his lavish lifestyle. Though Burkhalter denies the SEC’s allegations, it’s worth looking into the details of the case to better understand what happened.
Todd Burkhalter and Drive Planning
In 2008, Burkhalter registered with the SEC as an investment advisor; between 2008 and 2014, he worked comparatively brief stints at four investment firms. Since 2014, though, he hasn’t been registered with either the SEC or FINRA, the Financial Industry Regulatory Authority. In 2015, Burkhalter founded Drive Planning, LLC, a self-described “comprehensive financial group” that offered investment and financial planning services for clients in various industries, including film and TV projects, renewable energy, and real estate. Drive Planning has offices in Atlanta, Georgia; St. Petersburg, Florida; and Fishers, Indiana.