God country and prosperity: How a finance guru allegedly embezzled $1 million a day through a real estate Ponzi scheme

God country and prosperity: How a finance guru allegedly embezzled $1 million a day through a real estate Ponzi scheme

God country and prosperity: Todd Burkhalter marketed himself as a supporter of entrepreneurs, but the SEC claims he diverted $370 million of investor funds to settle client repayments and support a lavish lifestyle, including buying a yacht, a ranch, and private jet rides.

Burkhalter’s real estate lending scheme was so convincing that it allegedly drew in up to $1 million a day from investors eager for high returns. According to the Securities and Exchange Commission, Burkhalter’s Drive Planning programmed promised quarterly returns of 10% and attracted $372 million from 2,000 investors both in the U.S. and abroad over a period of four years.

Investigators have labelled the scheme a Ponzi scheme, exposing that returns were funded by new investors’ money rather than actual profits. A significant portion of the funds was used to finance Burkhalter’s opulent lifestyle, including expenditures on a yacht, holiday homes, and private jets.

“Drive Planning and Burkhalter gained the confidence of ordinary people by offering unrealistic returns,” said Nekia Hackworth Jones, Director of the SEC’s Atlanta office. “But the operation was nothing more than a classic Ponzi scheme.”

Burkhalter’s lawyer has not yet responded to requests for comment.

‘Transform Your Financial Future’

Regulators report that Burkhalter established Drive Planning in Alpharetta, Georgia, in 2015, offering a blend of tax strategies and private investment opportunities, primarily in real estate, with claims of transforming financial futures and improving investors’ lives.

In 2020, he authored a book titled “Bulletproof Your Finances: Confidence in Creating Financial Security,” presenting himself as an entrepreneur and financial strategist who had helped families and businesses achieve their goals.

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The SEC alleges that in the same year, Burkhalter introduced an investment scheme designed to pool funds for bridge loans to real estate developers. He promised a 10% return every three months with a minimum investment of $20,000.

The programme, named REAL (Real Estate Acceleration Loans), quickly gained traction. It raised $8.8 million in 2021, $63.2 million in 2022, $163.1 million in 2023, and $100.3 million in 2024 before it was shut down in May.

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By early May 2024, the scheme was processing applications for over a million dollars daily, supported by a network of more than 100 sales agents, according to SEC filings.

However, the SEC’s complaint indicates that Burkhalter, 52, did not use the funds for lending as promised but instead repaid earlier investors with new investments—a hallmark of a Ponzi scheme

Out of the $372 million gathered, Burkhalter repaid $154.9 million, including the promised returns. The SEC also reports that he diverted tens of millions to fund his luxurious lifestyle, including purchasing a yacht for $3.1 million, a luxury condo in Cabo San Lucas for $2 million, and a 250-acre cattle ranch in Mineral Bluff, Georgia, for over $22 million. The ranch, which features a large barn for event rentals, was advertised as embodying “American values of God, country, and prosperity.”

Burkhalter also spent over $4 million on private jet travel and hundreds of thousands on luxury cars and holidays, and invested several million in cryptocurrencies. Following his 2023 divorce, the SEC noted he used investor funds to settle with his ex-wife and paid around $65 million in commissions to his sales agents.

Shutting It Down

The SEC first informed Burkhalter of its investigation in April. By June, the agency had ordered him to cease Drive Planning’s operations and stop accepting new investments. Although Burkhalter initially complied, he later issued another round of commissions using the illicit funds, according to the SEC.

Subpoenas for financial records revealed that the investment programme relied on basic spreadsheets rather than sophisticated accounting software to manage its finances.

The SEC has appointed a receiver to oversee the dissolution of Drive Planning and has ordered Burkhalter to surrender his passport. The complaint also includes Burkhalter’s ex-wife and several related companies and properties as relief defendants, seeking to recover misappropriated funds.