Alleged Real Estate Scheme

Atlanta Man Accused of Operating $300 Million Ponzi Scheme

Alleged Real Estate Scheme

Atlanta News First

A metro Atlanta man is accused of leading a $300 million Ponzi scheme.

The Securities and Exchange Commission announced on May 6, 2021 that it obtained a preliminary injunction against the man and his company, Drive Planning.

The SEC alleges that the man used Drive Planning to solicit investments in real estate ventures, promising guaranteed returns of up to 12% per year.

How the Scheme Allegedly Worked

• The man allegedly used new investor funds to pay returns to earlier investors.
• He allegedly diverted investor funds to his personal use.
• The SEC alleges that the man's master spreadsheet shows that through May 6, he had raised more than $336 million from 669 investors.

Consequences

The SEC has barred the man from the securities industry.

He and Drive Planning have been ordered to pay more than $336 million in disgorgement, prejudgment interest, and civil penalties.

The SEC's investigation is ongoing.

Conclusion

This case is a reminder of the importance of investing with caution.

Investors should always do their research and only invest with reputable companies.

The SEC has a number of resources available to help investors avoid fraud, including its website and its toll-free hotline at 1-800-732-0330.