Todd Burkhalter Caught by SEC in $300M Ponzi Scheme Funding Private Jet and Yacht Luxury

A total of 2000 investors are scammed through a Ponzi scheme by Florida-based insurance agent Todd Burkhalter, who used to run a drive planning business in Georgia. The Securities and Exchange Commission (SEC) claimed he collected $300 million through fraudulent activity with investors in charges filed this week.

SEC stated that Todd Burkhalter has not only fooled the investors to pay earlier customers but also used investors for personal gain as he bought properties, a yacht worth $3 million, and private jets to travel.

What Strategy of the Ponzi Scheme He Used?

According to court evidence, the company and its employees have put fake schemes on people and scammed them by offering “bridge loans” particularly to real estate developers. Ensuring clients return 10 % of the amount after every 3 months.

Investors advised the clients to deposit a Minimum of $20,000 for investments and were pushed to use their retirement accounts and their savings or even take loans for this investment, as claimed by the SEC.

Statements of Nekia Hackworth Jones

Director of the SEC’s Atlanta Regional Office, Nekia Hackworth Jones stated,

Responses from Aaron Danzig and Kara Silverman

Burkhalter received an email about case inquiries from a newsletter and his lawyers replied with remarks regarding the SEC’s complaint.

Aaron Danzig and Kara Silverman responded,

“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.”

They informed, “Mr. Burkhalter denies the allegations contained in the SEC’s complaint and looks forward to quickly resolving this matter.” 

Read Also 

• FinCEN Proposes New AML Regulations For Real Estate Sector & Investment Advisers
• FinCEN And SEC Mandate Customer ID Program For Investment Advisers

Is There Any Legal Action?

Legal action against the website of Burkhalter’s company “Drive Planning” has been taken and the website has shut down and can’t be accessed since 15 August 2024.

As reported in the complaint, in April 2024, the SEC agreed with Burkhalter to make him aware that they were investigating about Ponzi scheme in his business and he accepted the offer to stop all illegal activities by not accepting investors on June 10.

However, the SEC claimed that after 11 days he continued to pay sales commissions to his agents and he moved investors’ money from his bank account to “settle his divorce”, and the court granted a “preliminary injunction” to freeze his assets based on these reasons.

Relief Defendants

SEC included multiple names in the case including Burkhalter’s ex-wife Jacqueline Burkhalter and his other businesses “Burkhalter Ranch Corporation, Drive Properties, Drive Gulfport Properties, and TBR Supply House” and SEC is seeking to recover money from all of these to return investors.

Lavish life of Burkhalter

Burkhalter lived a lavish lifestyle using investors’ money to buy expensive clothes, jewelry, and beauty items worth more than $300,00 million.

He spent funds on luxurious cars worth approximately $750,000, and $4.6 million on traveling and transferring the $1.2 million to the cryptocurrency platform “Coinbase” as reported by SEC.