The post Ponzi scheme that raised $370M sent funds to Coinbase, SEC appeared on BitcoinEthereumNews.com.

The Securities and Exchange Commission (SEC) has filed a complaint against Drive Planning, LLC, and Russell Burkhalter accusing them of operating a real estate Ponzi scheme in which funds were misappropriated to Coinbase, and used to buy a yacht and a private jet.  Drive Planning allegedly sold unregistered securities to investors, promising they could earn a 10% return in just three months. These returns were supposed to be generated by providing bridge loans to or entering into joint ventures with real estate developers. Strangely, the website for this scheme didn’t just promise incredible financial returns; it actually promised “to guide you towards being Relationally Rich, Physically Fit and Financially Free.”  In total, investors invested more than $372 million in the scheme, and it currently owes $287 million to investors.  Unfortunately for them, however, Drive Planning didn’t have a way to actually deliver these returns, instead allegedly paying them using funds raised from new investors, often encouraging current investors to ‘rollover’ their funds instead of withdrawing. The SEC claims it was necessary to file this complaint because Burkhalter had previously “pledged, on June 10, 2024, to cease accepting new investments in REAL, and to cease paying commissions or paying supposed returns to investors, he nevertheless paid sales commissions to Drive Planning sales agents on June 21.” Additionally, Burkhalter is going through a divorce and “has recently entered into a divorce settlement pursuant to which he may transfer to his spouse property bought with investor funds.” Stillwater, the yacht allegedly purchased with investor funds. Read more: Owner of ‘Ponzi-like’ crypto hedge fund ordered to pay back $84M losses Burkhalter, the founder of the scheme, has allegedly spent heavily from Drive Planning’s coffers, including:  $51k on RV-related expenses $42k for his ex-wife’s lawyer $3.1 million for a yacht $319k on “clothing, jewelry, and…

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Filed under: News - @ August 15, 2024 5:27 pm