The former chief operating officer of an Alpharetta company at the center of an alleged $300 million Ponzi scheme has pleaded guilty to an associated fraud charge in a deal with federal prosecutors.
David Bradford, 53, pleaded guilty Tuesday to a single count of conspiracy to commit wire fraud. The Peachtree Corners resident, charged over his involvement with investment advice firm Drive Planning, is due to be sentenced in March.
Bradford initially denied the allegations against him and waived indictment when he first appeared in court in November and was released on a $10,000 bond.
His plea deal, filed in court Wednesday, shows he could be sentenced to as much as five years in prison and fined up to $250,000. He could also be made to pay restitution and forfeit any proceeds of his crime.
“Bradford betrayed the trust of his clients, family and friends by encouraging them to make millions in bogus investments,” said U.S. Attorney for Northern Georgia Theodore Hertzberg.
Bradford will cooperate with the federal government’s investigations as part of the plea agreement, which recommends a “low-end” sentence in exchange.
To date, federal prosecutors have not filed criminal charges against Drive Planning’s founder and CEO, Russell Todd Burkhalter, who is referred to in Bradford’s charging document as “Individual 1.”
Burkhalter, who goes by his middle name, was sued in an associated civil case brought by the U.S. Securities and Exchange Commission in 2024. Through that case, Drive Planning was placed in receivership, and its assets were frozen.
Earlier this year, Burkhalter agreed — without admitting the SEC’s allegations against him — to hand over any ill-gotten gains and pay a civil penalty to be determined by the court. That case is still pending.
Bradford has agreed to pay restitution, which has yet to be calculated, according to his plea deal. It says the amount of loss resulting from his conduct is between $3.5 million and $9.5 million.
Prosecutors said Drive Planning received at least $4 million from investors through a real estate fund that Bradford created a marketing brochure for, promising a 22% annual return.
In the several years leading up to the SEC’s case, Drive Planning staff falsely told investors their money was government-protected and fully collateralized, according to a press release from Hertzberg’s office.
The SEC said Drive Planning raised more than $336 million, including almost $67 million from retirement accounts. It said more than 2,000 investors were involved.
In May 2024, the company owed investors $287 million, the SEC alleged. It said Burkhalter used investor money in part to fund his lavish lifestyle, including the purchase of a $3 million yacht.
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