Courts and Legal Enforcement

Federal prosecutors in Atlanta say Todd Burkhalter, 54, founder and CEO of financial-advisory firm Drive Planning LLC, has pleaded guilty to wire fraud in a Ponzi scheme that took about $380 million from more than 2,000 investors. Prosecutors allege Burkhalter marketed sham investments—including supposed short‑term loans to real‑estate developers promising 10% every three months and falsely claimed to be backed by property—then used incoming money to pay earlier investors and fund personal purchases like a $2 million yacht, a $2.1 million condo in Mexico and a motorcoach. He allegedly encouraged clients to raid retirement accounts, savings and lines of credit, magnifying the damage to families’ long‑term finances. Under a plea agreement, the U.S. Attorney’s Office for the Northern District of Georgia will recommend a sentence of more than 17 years in prison, while a court‑appointed official is trying to claw back assets for restitution that authorities admit will not make victims whole. The case underscores how 'too good to be true' yields and opaque private offerings remain fertile ground for Ponzi operators, a point investor‑protection advocates online are using to press for tougher oversight of advisers and alternative investments.