By Don Nico Forbes
The Securities and Exchange Commission charged Drive Planning and Chief Executive Russell Todd Burkhalter over what it called a $300 million real-estate Ponzi scheme.
The U.S. government agency said it has obtained a preliminary injunction, asset freeze and other emergency relief against the Atlanta-based company and its founder.
The SEC said the defendants misappropriated millions of dollars of investor funds--raised between 2020 and 2024 for purported real estate investments--to buy a $3.1 million yacht and fund Burkhalter's "lavish" lifestyle.
"Investors should be vigilant when they encounter aggressive sellers who make over-the-top sales pitches and promise high rates of guaranteed returns," it said, noting that more than 2,000 investors were impacted by the scheme.
Write to Don Nico Forbes at don.forbes@wsj.com
(END) Dow Jones Newswires
08-14-24 1012ET
