What does it
mean that Drive
Planning, LLC is in
receivership?
It means that the U.S.
District Court, in
Atlanta, Georgia,
presiding over the SEC
enforcement action
against Drive Planning,
LLC and Russell Todd
Burkhalter, appointed a
Receiver, Kenneth D.
Murena Esq., over all
the assets of Drive
Planning, LLC creating
the Receivership Estate.
What is the
Receiver's job and who
does he represent?
The Receiver is a
Court-appointed
fiduciary governed by
the Order Appointing
Receiver available under
the Court Documents tab.
He represents the
Receivership Estate for
Drive Planning, LLC and
will always act in the
best interests of the
Receivership Estate. He
does not represent
individual investors.
His job is to locate,
collect, and preserve
the assets of Drive
Planning, LLC. This
includes freezing funds
held in Drive Planning,
LLC's bank accounts,
taking over Drive
Planning LLC's real
property and operating
businesses, collecting
debts owed to Drive
Planning, LLC, pursuing
Drive Planning, LLC's
claims against third
parties, and searching
for assets purchased
with Drive Planning,
LLC's funds.
What do I need
to do next?
You should continue to
visit the Receiver's
website
www.driveplanningreceivership.com to
look for updates and
letters to investors.
You should also promptly
respond to any requests
for information from the
Receiver or his noticing
agent at Stretto. All
communications in this
case will be sent by
email. Please make sure
your email is up to date
by sending any changes
in email addresses to
the Receiver at
driveplanningreceiver@dvcattorneys.com.
Please complete the Data Collection Form and upload documentation
evidencing your
investment in Drive
Planning, LLC using this
link -
https://cases.stretto.com/driveplanning/content/3102-data-collection-form-formularios-de-recopilacion-de-datos/.
Investor documents
should include wire
transfer receipts,
canceled checks, IRA
statements and any other
documents in your
possession that evidence
your investment in Drive
Planning.
This link to the Data Collection Form will allow you to securely
upload your investor
documents for the
Receiver's review, for
use by Drive Planning's
forensic accountant in
preparing Drive
Planning's bank
reconstruction, and for
performing an analysis
of investor net losses.
What will the
Receiver do with all of
the assets he recovers?
The Receiver will hold
all funds collected and
the proceeds of the sale
of physical assets in a
distribution fund for
the benefit of Drive
Planning, LLC's
investors and creditors
to be distributed at a
later date.
May I request a
refund of my investment
from Drive Planning,
LLC?
All funds in the Drive
Planning, LLC
Receivership Estate will
remain frozen in the
Receivership Estate's
fiduciary accounts. No
distributions or refunds
will be made from the
Receivership Estate
until the Court approves
a claims process and
plan of distribution.
How long until
the claims process and
distributions begin?
The claims process will
likely begin when the
SEC enforcement action
is resolved, and a
judgment is entered
against one or all the
Defendants. The
beginning of the claims
process is probably 6-12
months away.
Distributions usually
begin 3-6 months after
the conclusion of the
claims process when all
approved claim amounts
have been set.
How will I know
when the claims process
begins?
When the time is
appropriate to begin the
claims process, the
Receiver will request
court approval to carry
out a claims process and
plan of distribution.
Once approved by the
Court, the Receiver will
send notice by email to
all investors providing
a portal to complete an
online claim form and to
upload supporting
documents such as bank
statements, wire
transfer receipts,
canceled checks, and
promissory notes. Please
retain all information
that you have concerning
Drive Planning, LLC.
How will my
claim amount be
calculated?
Your approved claim
amount will be your net
loss amount. That means
the Receiver will
determine the amount of
your principal
investment in Drive
Planning, LLC, and
deduct any distributions
you received to
determine the amount of
your net loss. Your
claim amount will not
include any alleged
interest earned and
rolled over.
How will my
distribution be
calculated?
All distributions from
the Receivership Estate
must be approved by the
Court. The amount
distributed to investors
will be based on the
total amount of funds
available in the
Receivership Estate at
the time of the
distribution and the
total amount of investor
net losses. The exact
calculation of investor
distributions will be
based on the facts of
this case and cannot be
predicted yet.
Do I need to
hire a lawyer to
represent me in this
case?
You do not need to hire
a lawyer to file a claim
in the Receivership
Estate. You may want to
hire a lawyer to
determine whether you
have any other claims
available to you under
the law. The Receiver
does not represent you
in an individual
capacity and cannot give
you legal advice.
Do you sell the
Drive Planning, LLC
receivership estate's
assets for market value
or is this a fire sale
liquidation?
Asset sales are made in
accordance with the
Court Order Appointing
Receiver and the federal
statute 28 U.S.C. ss.
2001 and 2004 and
require the Receiver to
request and obtain a
Court order approving
the proposed sale.
Accordingly, the
Receiver will employ
licensed
brokers/professionals to
sell assets of the
Receivership Estate at
or as close to market
value as possible as
required by the Court
Order at paragraphs 38
and 39.
What if I
already paid taxes on
the interest that I
never received because I
rolled it over and
reinvested it with Drive
Planning, LLC?
If you paid
taxes on interest that
you never received, then
you should consult your
tax professional about
the proper procedure for
investors to deduct the
interest and taxes paid
on a Theft Loss
Deduction. The Receiver
has not yet located any
1099-INT forms submitted
by Drive Planning to the
IRS, and it is possible
that Drive Planning
never actually submitted
those forms. The
Receiver is waiting for
the IRS to respond to
his inquiry and provide
Drive Planning, LLC's
tax transcript.
Moreover, the Receiver
does not have sufficient
information regarding
interest purportedly
earned by investors to
prepare corrected
1099-INT forms for
investors. And, the
forensic reconstruction
of Drive Planning's bank
accounts will not be
completed for a
couple of months. So,
the Receiver will not
correct any of Drive
Planning LLC's tax
filings. The
Receiver is still
investigating the
interest paid by Drive
Planning in 2024 and
will determine what the
IRS requires to be
reported in 2025. Thus,
you should consult with
your accountant about
proceeding with your tax
filings using the court
documents from this case
as supporting documents.
All relevant court
documents are posted at
www.driveplanningreceivership.com.
Given that investors
are required to take the
Required Minimum
Distribution
(“RMD”) from their IRAs
but their IRAs are tied
up in Drive Planning,
can we provide any
information to
investors' IRA
administrators regarding
the freeze of investors’
investments in Drive
Planning making the
required distributions
impossible, which the
IRA administrators can
include in their
reporting to the IRS?
In this situation,
investors should speak
with their IRA
administrator and review
IRS Publication 590. The
RMD is based on the cash
in the IRA, and there
will likely be no
distribution by the
Receiver in 2024, so the
investment value cannot
be converted to cash for
an RMD. Until Investors
receive cash and have
funds available to
distribute, there is
nothing to serve as a
basis for an RMD.
Please note that, at
this time, the Receiver
is unable to declare
that any investor's
investment in Drive
Planning has reduced or
no value.
The Receiver suggests
that all investors send
a copy of the Order
Appointing Receiver, the
Preliminary Injunction
Freezing Assets and
Granting Other Equitable
Relief, and the SEC’s
Complaint against Drive
Planning and Russell
Todd Burkhalter, to
their respective tax
professionals and IRA
administrators. These
Orders and the Complaint
are posted to the
Receivership website
(driveplanningreceivership.com).
Investors are encouraged
to consult with their
IRA administrators and
tax professionals to
address any penalty or
tax-related issues,
as the Receiver and his
professional cannot
provide advice or
assistance to investors
on these issues.
What if I still
have questions?
Please contact the
Receiver's office by
email at
driveplanningreceiver@dvcattorneys.com
or by telephone at (786)
706-9916.
Will the Receiver send investors tax statements so they can claim
their losses on their
tax returns for 2024?
The Receiver's office is not sending or
submitting
tax statements for Drive
Planning LLC. Based on
our research, Drive
Planning did not
submit tax returns or
other tax statements to
the IRS. We will not
be able to correct Drive
Planning's failure to
comply
with the tax reporting
requirements. In the
future, we will prepare
and file tax returns for
the Drive Planning
Estate when the time is
appropriate.
At this time, we do not have a
finalized investor net
loss analysis or a
forensic bank
reconstruction. Our
forensic accountants
continue to gather
records and work on
their analysis. In
addition, the Receiver
has not completed the
collection and
liquidation of assets,
and as such, we do not
know how much money will
be returned to
investors. Therefore, we
cannot yet determine the
amount of investor
losses.
If you seek to claim losses on your tax
returns at this time,
you will need to speak
to a tax professional
about whether you can
use the Theft Loss
Deduction available in
the IRS Code to do so.
You may download all
court documents in this
case from the
receivership website
provided below should
you need evidence of the
alleged fraud.
The Receiver's office is not a
tax professional and
cannot give
any tax advice to
investors.
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