A financial adviser pleaded guilty Wednesday to wire fraud in a Ponzi scheme that defrauded more than 2,000 people of $380 million. Todd Burkhalter, 54, of St. Petersburg, Florida, founded Drive Planning LLC and marketed fraudulent investment schemes promising quarterly returns of 10 percent. Prosecutors plan to recommend a sentence of more than 17 years in prison.
The guilty plea came as federal authorities moved to recover stolen money through the liquidation of Burkhalter’s assets, though prosecutors said full recovery is highly unlikely.
How the Scheme Worked
One scheme purported to provide short-term loans to real estate developers while promising returns of 10 percent every three months. Burkhalter falsely represented that these investments were backed by real estate holdings.
Targeting Victims
Burkhalter encouraged investors to dip into retirement accounts and savings and to take out lines of credit to fund his schemes.
Lavish Spending
Burkhalter used the stolen money to purchase luxury items including a $2 million yacht, a $2.1 million condominium in Mexico, and a motorcoach.
Recovery and Impact
Aaron Seres, a supervisory special agent at the Atlanta-area FBI office, said at a news conference announcing the plea: “These losses will echo through the lives of these victims long after these defendants receive their well-deserved sentences.”
U.S. Attorney Theodore Hertzberg announced that a court-appointed official is attempting to recover victims’ money through the sale of Burkhalter’s assets. Hertzberg said it is highly unlikely that victims will recoup their full losses.
Drive Planning LLC’s former chief operating officer has also pleaded guilty in the scheme.