According to BlockBeats, on August 14, the U.S. Securities and Exchange Commission (SEC) announced that it has obtained a preliminary injunction and asset freeze to investigate Drive Planning LLC and its founder and CEO, Russell Todd Burkhalter. The SEC alleges that from 2020 to June 2024, Drive Planning and Burkhalter raised over $300 million from more than 2,000 investors by promising high returns, such as '10% interest every three months,' for supposed real estate investments. However, this was a typical Ponzi scheme, where funds from new investors were used to pay returns to existing investors. Additionally, the SEC accuses Burkhalter of misappropriating millions of investor funds to purchase a $3.1 million yacht, $4.6 million in private jet and luxury car services, and $2 million for a luxury apartment to support his lavish lifestyle.Nekia Hackworth Jones, Director of the SEC's Atlanta Regional Office, stated that Drive Planning and Burkhalter gained the trust of ordinary investors through false promises, executing a classic Ponzi scheme. She urged investors to be wary of sellers who excessively promote high returns. Besides obtaining emergency relief, the SEC is also seeking a permanent injunction against the defendants, the return of ill-gotten gains, civil penalties, and a ban on Burkhalter from serving as a corporate officer. The case is currently under further investigation.
