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Atlanta — A monetary adviser in Georgia pleaded responsible Wednesday to wire fraud in a Ponzi scheme that bilked greater than 2,000 folks out of $380 million, federal authorities introduced.
Prosecutors accused Todd Burkhalter, the founder and CEO of Drive Planning LLC, of selling a number of fraudulent funding schemes and utilizing the cash partially to purchase a $2 million yacht, a $2.1 million rental in Mexico and a motorcoach.
Burkhalter was represented by the federal defenders’ workplace. A message to the workplace after hours on Wednesday was not instantly returned.
Prosecutors stated considered one of Burkhalter’s funding schemes purported to offer short-term loans to actual property builders and promised returns of 10% each three months. In line with prosecutors, Burkhalter falsely stated these investments have been backed by actual property holdings.
Burkhalter, 54, of St. Petersburg, Florida, inspired buyers to dip into retirement accounts and financial savings and take out strains of credit score. Drive Planning’s former chief working officer has additionally pleaded responsible.
“These losses will echo by way of the lives of those victims lengthy after these defendants obtain their well-deserved sentences,” stated Aaron Seres, a supervisory particular agent on the Atlanta-area FBI workplace.
As a part of a plea settlement, prosecutors plan to suggest a sentence of greater than 17 years in jail for Burkhalter, U.S. Lawyer for the Northern District of Georgia Theodore Hertzberg stated.
Hertzberg and Seres spokes at a information convention saying Burkhalter’s plea.
Hertzberg stated a court-appointed official is attempting to get better victims’ cash by promoting Burkhalter’s property, however it’s extremely unlikely that they may get again all the things they misplaced.
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