Drive Planning Faces SEC Ponzi Scheme Charges

In August the Securities and Exchange Commission (SEC) announced charges[1] against alleged Ponzi scheme operator Drive Planning LLC and CEO Russell Burkhalter. MDF Law is investigating customer disputes involving Gerry Linarducci[2]’s recommendations of Drive Planning. If you lost money investing in products recommended by the former Indianapolis-based MassMutual broker (CRD# 2807047[3]), contact us for a free consultation.

SEC: Drive Planning Scheme Affected 2,000 Investors

The SEC alleges in its charges against Drive Planning that the company was effectively “a $300 million real estate Ponzi scheme impacting more than 2,000 investors.” The alleged scheme involved Drive Planning and Mr. Burkhalter representing to investors that their money would “fund land development projects,” promising interest of ten percent every three months. They allegedly advised investors to dig into their savings and retirement accounts, “and even open lines of credit” to fund their investments.

Unfortunately, the SEC alleges, the company was unable to generate the returns it promised investors. Instead, it allegedly “used investor funds to make Ponzi-like payments.” At the same time, according to the charges, Mr. Burkhalter misappropriated investor funds and directed them toward personal expenses. These expenses included “a $3.1 million yacht and spending $4.6 million on chartering private jets and luxury car services.”

Alleged Ponzi Scheme Involved $300 Million in Investments

As the SEC’s complaint[4] notes, Drive Planning marketed its unregistered securities as “Real Estate Acceleration Loans,” or REAL. Between 2020 and June 2024, more than 2,000 investors made more than $300 million in total investments in REAL. “The scheme was receiving applications for over a million dollars every day” by May 2024, according to the SEC. Per the allegations, more than 100 sales agents were connected with the business.  

The complaint describes a number of lifestyle expenses Mr. Burkhalter allegedly spent investors’ money on. These include “at least $183,871 on hotels and resorts” and more than $749,000 on “automobile related expenses.” Mr. Burkhalter allegedly also used Drive Planning investors’ funds to purchase a ranch, and to build a barn on that ranch “which he rents out as an event venue.” He also allegedly purchased a clothing business with investor funds.

The SEC seeks “permanent injunctions, disgorgement of ill-gotten gains with prejudgment interest, and civil penalties against the defendants, and an officer-and-director bar against Burkhalter.” They also seek relief of allegedly ill-gotten gains from Mr. Burkhalter’s spouse and entities related to Drive Planning.

Drive Planning Losses? Call MDF Law

If you lost money on investments in Drive Planning recommended by Russell Burkhalter or Gerry Linarducci, you may have recovery options. The investment fraud attorneys at MDF Law have a proven track record of advocacy for investors. We have recovered substantial awards through the FINRA arbitration process. We accept cases on a contingency—clients only pay if they win—and offer free consultations nationwide. Call 800-767-8040 to speak with a lawyer today.