A Georgia man pleaded guilty to wire fraud in US federal court on Wednesday after engineering “the largest Ponzi scheme in Georgia history,” defrauding over 2,000 investors of over $380 million.

The US Attorney’s Office for the Northern District of Georgia released a statement explaining how Todd Burkhalter was the mastermind behind financial advisory group “Drive Planning LLC” (Drive). Burkhalter marketed two main investment opportunities under Drive: a “Real Estate Acceleration Loan” and a”Cash Out Real Estate Fund”.

According to US Attorney Theodore S. Hertzberg, Burkhalter marketed these programs as “easy and simple” money-making opportunities and falsely assured potential investors that lacking accreditation was not an issue. Over 2,000 investors pulled from retirement accounts, lines of credit, and savings to participate in the fraudulent programs.

The scheme progressed from September 2020 to June 2024 and not only defrauded investors, but illegally used names of real estate development companies as well. Drive misled investors into believing their investments were entirely collateralized by real estate, particularly real estate under the ownership of a well-known Georgia real estate developer. The developer later sued to enjoin Drive from using the company’s name.

Burkhalter used the funds embezzled from businesses to buy himself lavish goods and services, including a $2 million yacht, a $2.1 million condo in Mexico, and three luxury vehicles totaling $800,000.

In August 2024, the Security and Exchange Commission filed for a temporary restraining order against Drive and filed enforcement actions in federal court. Burkhalter’s court date is still to be determined, but the government has conditionally promised to recommend a court sentence of 17 and a half years.