SEC accuses Russell Todd Burkhalter and his company of a $300 million Ponzi scheme

BlockBeats News: On August 14th, the US Securities and Exchange Commission (SEC) announced today that they have obtained preliminary injunctions, asset freezes, and other emergency relief from the court to investigate Atlanta Drive Planning LLC and its founder and CEO Russell Todd Burkhalter. The SEC accuses Drive Planning and Burkhalter of raising over $300 million from over 2000 investors for so-called real estate investments between 2020 and June 2024, through promises of high returns ("10% interest every 3 months") and other means. But in reality, this is just a typical Ponzi scheme where they use new investor funds to pay returns to existing investors. In addition, the SEC accuses Burkhalter of misappropriating millions of investor funds to purchase $3.1 million worth of yachts, $4.6 million worth of charter and luxury car services, and $2 million worth of luxury apartments to satisfy his luxurious lifestyle. SEC Atlanta Division Director Nikaya Hackworth Jones stated that Drive Planning and Burkhalter gained the trust of ordinary investors through false promises and carried out a typical Ponzi scheme. She called on investors to be wary of sellers who excessively promote high returns. In addition to obtaining emergency relief, the SEC also seeks a permanent injunction against the defendant, refunds of illegal gains, and civil fines, and requires Burkhalter to be prohibited from serving as a company executive. The case is currently under further investigation.