Scheme: Burkhalter’s Fannin properties named by SEC
The United States Securities and Exchange Commission (SEC) is asking the assets of Russell Todd Burkhalter and Jacqueline Burkhalter be frozen.
This is only one of the demands made in a 39-page lawsuit filed August 13 against the two individuals in United States District Court for the Northern District of Georgia in Atlanta.
Also named are the Burkhalter Ranch in Mineral Bluff and TBR Supply House in Blue Ridge, as well as Drive Properties, LLC, and Drive Gulfport Properties, LLC.
The SEC alleges multiple counts of fraud by Russell Todd Burkhalter through a Ponzi scheme that bilked investors out of more rhan $300,000,000. The scheme was in place 2020 through at least June 2024 through his business, Drive Planning, LLC.
In the form of Real Estate Acceleration Loans, Burkhalter promised investors a 10% return in three months. Promotional materials promised:
•If you have $20,000 you can participate;
•You can use money from your investment account;
•You don’t have to be an accredited investor;
•You can use money from savings;
•You can use money from a line of credit; and,
•You do not need to be a U.S. citizen.
As of early May 2024, the scheme was receiving applications for over one million dollars every day driven by an organization of more than 100 sales agents, the SEC lawsuit says.
Through May 6, 2024, more than $336 million had been raised from more than 2,000 investors in at least 48 of the United States, as well as other countries, with $66.9 million of that amount coming from retirement accounts.
“Burkhalter misappropriated millions of dollars of investor funds to acquire and maintain a wealthy lifestyle,” the SEC alleges. Among purchases were:
•A yacht called “Stillwater” at a purchase price of $3.1 million with at least $2 million coming from investor funds;
•$319,628 on clothing, jewelry and beauty treatments, including $69,293 at Diamonds Direct, $75,785 at Louis Vuitton, and $7,777 at Drip IV, a beauty and wellness company in St. Petersburg, Florida;
•$4.6 million to charter private jets and luxury car services;
•$183,871 on hotels and resorts;
•$793,243 on automobiles related expenses;
•To buy a clothing business in Blue Ridge with Jacqueline operating that business; and,
•Burkhalter used or intended to use real estate purchased with investor funds to fund his obligations under a divorce settlement.
The SEC complaint says Jacqueline Burkhalter was Burkhalter’s wife while he was operating the Ponzi scheme.
The complaint says emergency relief is necessary to include an asset freeze and a receiver to gather, preserve and protect whatever assets still exist for the benefit of the scheme’s victims.
Also sought by the SEC are a complete accounting of the amounts raised and their use, civil penalties against the Burkhalters, an order preventing the defendants from destroying documents, and an order for Burkhalter to surrender all passports.
No answer to the charges had been filed as of Thursday, August 15.
However, WRTV in Indianapolis, Indiana, reported that attorneys for Burkhalter say he denies the allegations. “While we cannot disclose specific details about the matter, Mr. Burkhalter cooperated with the SEC in submitting the receivership and preliminary injunction orders to the Court,” read the attorney statement. “Mr. Burkhalter denies the allegations contained in the SEC’s complaint and looks forward to quickly resolving this matter.”