The Securities and Exchange Commission (SEC) charged David J. Bradford, former chief operating officer of Drive Planning LLC, and Gerardo L. Linarducci, former managing partner of Drive Planning and head of its Indiana branch office, for their roles in an alleged $300 million Ponzi scheme related to Drive Planning’s “Real Estate Acceleration Loans” program.
The complaint, filed in the US District Court for the Northern District of Georgia, alleging Bradford and Linarducci were part of a scheme that lured investors with a promised 10% rate of return was guaranteed; that investors held an interest in underlying collateral as part of their investment; that Drive Planning partnered with real estate developers in profit-sharing agreements; and that profits from those partnerships funded the promised return to REAL investors.
According to the complaint, Bradford and Linarducci raised more than $35 million and $13 million in investor funds, respectively, and Bradford’s and Linarducci’s sales teams raised more than $100 million and $30 million, respectively, by selling Real Estate Acceleration Loans investments. Bradford and Linarducci received millions of dollars in compensation in connection with such sales.
The SEC previously obtained a preliminary injunction, asset freeze, and other emergency relief pursuant to an emergency action against Drive Planning and its founder and CEO, Russell Todd Burkhalter, in connection with the alleged scheme.
The SEC seeks permanent injunctions, disgorgement with prejudgment interest, and civil penalties against Bradford and Linarducci. Without admitting or denying the allegations in the complaint, Bradford consented to the entry of a final judgment, subject to court approval, in which he agreed to be permanently enjoined from violating the charged provisions of federal securities law and from participating in the issuance, purchase, offer, or sale of any security, except for purchases or sales in his personal accounts, and agreed that that court shall order him to pay disgorgement with prejudgment interest and a civil penalty in an amount to be determined by the court upon motion by the SEC.
