Ponzi scheme mastermind admits $380M fraud after lavish spending spree
Todd Burkhalter, the founder and CEO of Drive Planning LLC, has pleaded guilty to wire fraud after running a massive Ponzi scheme. The fraud defrauded over 2,000 investors of more than $380 million. Prosecutors are now pushing for a prison sentence of over 17 years.
Burkhalter convinced victims to invest by promising unrealistic returns of 10% every three months. He falsely claimed their money was secured by real estate holdings. Many were persuaded to drain retirement accounts, savings, and even take out loans to join the scheme.
Instead of investing the funds, Burkhalter spent the stolen money on luxury purchases. These included a $2 million yacht, a $2.1 million condo in Mexico, and a high-end motorcoach. A court-appointed official, Jason B. Osborn, is now working to recover victims' losses. His team is selling off Burkhalter’s assets to return as much money as possible. Meanwhile, Drive Planning’s former chief operating officer has also pleaded guilty in connection with the fraud.
The case has left thousands of investors facing significant financial losses. Burkhalter’s sentencing will determine whether he serves over 17 years behind bars. Recovery efforts continue as authorities liquidate his seized assets.
