The Good Law Group, in collaboration with our co-counsel at Sonn Law Group, have filed our first-class action lawsuit related to the alleged Drive Planning LLC Ponzi scheme. This case marks a significant milestone in our fight to secure justice and compensation for the many victims defrauded by this elaborate scheme.
Drive Planning LLC, led by its founder Russell Todd Burkhalter, is accused of orchestrating a massive Ponzi scheme that defrauded over 2,000 investors of more than $300 million. These victims were lured with promises of substantial returns on investments through what was purported to be legitimate real estate ventures, but in reality, these investments were nothing more than unregistered securities marketed to unsuspecting individuals.
The Alleged Fraud: How the Drive Planning Ponzi Scheme Worked
The alleged Ponzi scheme run by Drive Planning and Burkhalter was a classic example of financial fraud where early investors were repaid, not through legitimate business operations, but by money from new investors. Promising a 10% return on investment every three months, Drive Planning lured investors from across the country, encouraging them to invest large sums of money—often their retirement savings or funds from pension plans—into what they were told were real estate investments.
The reality, however, was starkly different. Drive Planning allegedly used the funds of new investors to pay off earlier ones while funneling a substantial portion of the money to support his extravagant personal lifestyle, which included luxury cars, private jets, and a multimillion-dollar yacht. The alleged fraudulent scheme persisted, with investors rolling over their investments into new, supposed 90-day “Real Estate Acceleration Loans” (REAL). As long as more new investor funds flowed in, the scheme continued to function, but it was unsustainable in the long term.
Records obtained to date show that by May 2024, Drive Planning and their agents had raised over $336 million from over 2,000 investors in the United States and other countries, including $66.9 million from retirement accounts alone. These investors were misled into believing that their funds were being used for legitimate real estate bridge loans and joint ventures, which would generate the promised returns. Instead, the money was allegedly being misused, with most of it being paid out to earlier investors masquerading as so-called “returns” or being siphoned off to fund personal expenditures of Burkhalter and others.
Our First Class Action Complaint: Defendants and Allegations
In our first class action, we are seeking to represent a class of investors who have lost large sums of money as a result of the fraudulent actions of Drive Planning LLC, and their associates. The defendants in this case include:
- Gerardo Lorenzo Linarducci: An Indiana-based broker who was employed by Drive Planning and played a pivotal role in soliciting investments from unsuspecting individuals. Linarducci presented himself as a managing director of Drive Planning and used his credentials to give the scheme an air of legitimacy, convincing investors that their funds were being used in safe and profitable ventures based on his alleged expertise.
- Integrity Wealth Partners, LLC (IWP): A wealth management firm where Linarducci is a principal. This firm played a role in marketing and selling these unregistered securities to investors, helping to facilitate the fraud.
- Ducci Enterprises, LLC: Another firm associated with Linarducci that was involved in promoting the fraudulent investments to clients.
The lawsuit alleges that these defendants negligently misrepresented the nature of the investments, failed to disclose the risks involved, and violated federal and state securities laws. The lawsuit further alleges that Defendants co-branded Drive Planning’s products with their own. Specifically, Defendants promoted Drive Planning’s REAL investments disregarding the fact that these investments were not legitimate and that the promised returns were unsustainable.
The Fraudulent Real Estate Acceleration Loan (REAL) Program
The alleged Drive Planning Ponzi scheme centered around its “Real Estate Acceleration Loan” (REAL) program, which was aggressively marketed to investors. Promotional materials distributed by Defendants described the REAL investment as a bridge loan opportunity that would provide a 10% return in just three months. Investors were told that their funds would be used to finance real estate development projects, and they were provided with assurances that the investments were backed by real estate assets.
The reality was quite different. Drive Planning’s “master spreadsheet,” which tracked investments and payouts, revealed that there was no legitimate assets behind the supposed 10% quarterly returns. Bank records obtained to date show that the returns came from the money deposited from new investors, rather than from any real estate ventures or other income-generating activities. In fact, Drive Planning received only $17.6 million from non-REAL sources between September 2020 and June 2024, while the vast majority of the funds—$372 million—came directly from investors.
Drive Planning and its leadership were able to keep the scheme afloat by paying earlier investors with the funds from new ones, a classic Ponzi structure. As long as more money came in, they could pay out the promised returns and convince investors to roll over their investments into new 90-day cycles.
The Collapse of the Ponzi Scheme and Legal Action
By 2024, the Ponzi scheme began to unravel as Drive Planning struggled to maintain its cash flow. By May 2024, Drive Planning ceased accepting new investments and stopped paying commissions to his sales agents. Investors began to raise concerns when they did not receive their promised returns, and by June 2024, the Securities and Exchange Commission (SEC) filed its complaint against Drive Planning, alleging violations of federal securities laws.
The SEC’s investigation revealed the full extent of the fraud, and a Federal Court in Georgia appointed a receiver to take control of Drive Planning’s assets immediately to prevent further losses for the victims. The Federal Court in Georgia also issued a preliminary injunction preventing Burkhalter and Drive Planning from continuing their fraudulent activities. While the SEC’s actions have halted the Ponzi scheme, thousands of investors are still left with significant financial losses.
What We Are Seeking
In this first class action, we are seeking recovery for the investors who were defrauded by Drive Planning. Our goal is to recover the funds that were stolen from our clients and to hold the defendants accountable for their negligence and fraudulent conduct.
Future Actions and Call to Action
This class action is just the beginning. We plan to file additional lawsuits and represent more victims of the Drive Planning Ponzi Scheme and to ensure that every investor has the opportunity to recover the maximum amount possible.
If you or someone you know has been affected by the Drive Planning LLC Ponzi scheme, we encourage you to contact us at The Good Law Group. We are actively seeking additional clients and documents to help build the strongest possible case. Every piece of information helps, and we are committed to pursuing justice for all victims of this fraud.
Please reach out to us with any questions, concerns, or if you wish to discuss your potential case. You can contact The Good Law Group at (847)577-4476 or via email at info@thegoodlawgroup.com.
Together, with our co-counsel at Sonn Law Group, we will continue to fight for the recovery of the funds stolen by this massive Ponzi scheme. Let us help you take the first step toward financial recovery.
Contact Us Drive Planning
