Georgia financial advisor admitted to scamming $380M from 2,000 clients in Ponzi scheme. How to spot shady investments

Core Insights - Todd Burkhalter operated a Ponzi scheme through his company Drive Planning LLC, defrauding approximately 2,000 clients out of $380 million, marking it as potentially the largest Ponzi scheme in Georgia's history [2][4] - The fraudulent scheme involved two main products: the "Real Estate Acceleration Loan" (REAL), promising 10% returns every three months, and the "Cash Out Real Estate Fund" (CORE Fund), claiming 10% returns every six months [2][3] - Burkhalter misappropriated funds for personal luxuries, including $2 million on a yacht and $2.1 million on a condo in Cabo San Lucas, Mexico [3] Company Overview - Drive Planning LLC was established to offer high-yielding real estate loans but instead engaged in deceptive practices from September 2020 to June 2024 [2] - The company’s operations were centered around misleading investment opportunities that ultimately served to pay off earlier investors rather than generate legitimate returns [3] Industry Context - In 2024, the Federal Trade Commission reported that $12.5 billion was lost to fraud, with $5.7 billion attributed to deceptive investment schemes, reflecting a 24% increase from 2023 [5] - Research indicates that the most vulnerable targets of Ponzi schemes are not the wealthy but rather the elderly, affinity groups, and friends or family of victims, with 46% of examined schemes involving such demographics [6]