Ponzi Scheme Promises 10% Return, Delivers Fraud!

SEC v. David J. Bradford, Gerardo L. Linarducci — U.S. Securities and Exchange Commission Litigation Release No. 26456, dated December 30, 2025.

The SEC charged David J. Bradford and Gerardo L. Linarducci, former executives at Drive Planning, LLC, for their involvement in a $300 million Ponzi scheme. They allegedly misled investors about the safety and returns of "Real Estate Acceleration Loans." Bradford has consented to a final judgment, while the SEC seeks injunctions, disgorgement, and penalties against both.

In Plain English

Imagine someone promised you a guaranteed 10% return on your money, saying it was backed by real estate deals. But instead of investing your money, they used it to pay off earlier investors, like a game of financial musical chairs. That's what happened here, and two former Drive Planning executives are accused of helping to run this fake investment program.

Disclaimer: all facts are drawn from the SEC's own filings; the claims described are allegations unless and until a court rules or the parties settle, and some cases end in dismissal.

How the Alleged Scheme Worked

1. The Investment Program Drive Planning, LLC offered an investment program called 'Real Estate Acceleration Loans.' This program was presented to investors as a way to earn significant returns.
2. Promises to Investors David J. Bradford and Gerardo L. Linarducci allegedly told investors that their promised 10% rate of return was guaranteed. They also claimed investors held an interest in underlying collateral as part of their investment.
3. False Partnership Claims The defendants allegedly misrepresented the source of the returns, stating that Drive Planning partnered with real estate developers in profit-sharing agreements. They claimed profits from these partnerships funded the promised returns to investors.
4. Fueling the Scheme Bradford and Linarducci played integral roles in promoting and selling these investments. They personally raised substantial amounts of investor funds, contributing significantly to the scheme's growth.
5. Sales Figures According to the complaint, Bradford personally raised over $35 million and his sales team raised more than $100 million. Linarducci personally raised over $13 million and his team raised more than $30 million.
6. Compensation for Sales In exchange for their efforts in selling these investments, Bradford and Linarducci received millions of dollars in compensation, further incentivizing their participation in the alleged fraudulent scheme.

The Enforcement Action

On December 19, 2025, the SEC charged David J. Bradford and Gerardo L. Linarducci with securities fraud related to an alleged $300 million Ponzi scheme. The SEC previously took emergency action against Drive Planning and its CEO. Bradford consented to a final judgment, agreeing to permanent injunctions, disgorgement with prejudgment interest, and a civil penalty to be determined by the court. The SEC seeks similar relief against Linarducci. The SEC's investigation is ongoing.

Named in this action: David J. Bradford, Gerardo L. Linarducci.

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