FISHERS, Ind. — The website and social media accounts are no longer available for a financial firm accused of running a Ponzi scheme.
Drive Planning LLC has offices in Fishers, Indiana, as well as Georgia and Florida, according to their website.
WRTV Investigates' Kara Kenney broke the story Wednesday about the United States Securities and Exchange Commission (SEC) lawsuit which alleges Drive Planning LLC used a $300 million Ponzi scheme to defraud 2,000 investors across the country.
Jeff Sonn, a Miami attorney and Ponzi scheme expert, has been studying Drive Planning LLC.
“We first got a call in June from nervous investors who had not received their payments. We began to investigate,” said Sonn. “Some of my clients were interviewed by the SEC.”
WRTV Investigates asked Sonn, who’s been practicing securities law for 36 years, what stands out to him about the SEC’s case against Drive Planning.
“One of the reasons Drive Planning was able to succeed is they had a large network of agents that were selling the investment,” said Sonn. “It also succeeded because of the widespread use of social media and videos and some in-person seminars."
Patrick and Laura Mcloughlin of Noblesville thought they were investing in their future when they trusted their money with Drive Planning LLC.
They hope to get some of their $250,000 investment back.
WRTV Investigates has received emails from investors across the country asking if they’ll get their money back.
“Based on my experience, I do think investors will get some money back,” said Sonn. “It's too early to tell how much."
Investigators also allege at least $2 million in investor funds was used to buy a $3.1 million yacht called “Stillwater” for CEO Russell Todd Burkhalter.
After reviewing court filings, Sonn estimates Drive Planning has at least $50 million in assets.
Typically, a court appointed official will sell those off.
"They will put that in the bank account, and then go through all the investor claims, certify the amount and then eventually pay back the investors,” said Sonn.
The court has appointed a receiver over Drive Planning, which controls the property and assets during the case.
“I would expect the receiver will file lawsuits or try to settle with people who have acquired assets derived from stolen money,” said Sonn. “For example, if someone paid millions of dollars to an agent who used that money to buy a car, house or boat, it would not be uncommon for the receiver to say you need to give that back, you need to sell that asset and return that money so we can pay back the investors.”
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Sonn is planning to file his own lawsuit to help people get their money back.
He also points out in cases like this, the U.S. Department of Justice conducts a criminal investigation.
At this point, no criminal charges have been filed related to Drive Planning LLC.
No hearing date has been scheduled.
Attorneys for Burkhalter say he denies the allegations.
"While we cannot disclose specific details about the matter, Mr. Burkhalter cooperated with the SEC in submitting the receivership and preliminary injunction orders to the Court," read the attorney statement. "Mr. Burkhalter denies the allegations contained in the SEC’s complaint and looks forward to quickly resolving this matter."
