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Drive Planning Founder Sentenced to 20 Years for $380 Million Ponzi Scheme

Judge Tiffany R. Johnson ordered roughly $233.7 million in restitution, with the company's receivership and SEC claims set to pursue remaining assets.

Overview

  • The founder and CEO, Todd Burkhalter, received a 20-year federal prison sentence and was ordered to pay about $233.7 million in restitution after pleading guilty to wire fraud.
  • Prosecutors say the scheme ran from September 2020 through June 2024 and stole nearly $380–400 million from more than 2,000 investors by selling fake real‑estate‑backed products called REAL and the CORE Fund.
  • Investigators say Burkhalter used investor money for a lavish personal life, buying a yacht, a luxury condo in Cabo San Lucas, expensive vehicles, private travel and other items that prosecutors listed at sentencing.
  • Two senior Drive Planning executives pleaded guilty earlier this week and received shorter prison terms: COO David Bradford was sentenced to four years with about $4.2 million restitution and Chief Administrative Officer Julie Edwards received two years and roughly $630,000 restitution.
  • Civil efforts to recover assets continue under an SEC-ordered receivership, but the judge and prosecutors warned that many victims who lost retirement and college savings will likely not recover all their losses.