US EditionFederal officials say a prominent Georgia Republican was running a $140 million Ponzi scheme
GEORGIA, UNITED STATES, JUL 11 – The Securities and Exchange Commission alleges First Liberty used new investor funds to pay existing investors and misused money for personal and political expenses, with 90% of loans in default.
- On July 10, the SEC filed a civil complaint accusing Georgia-based First Liberty Building & Loan and founder Brant Frost IV of operating a $140 million Ponzi scheme.
- Since 2021, First Liberty operated at a deficit each year, using new investor funds to pay previous investors, with most loans defaulting, regulators say.
- The SEC's complaint alleges that Frost raised $140 million from over 300 investors, with 90% of loans defaulted, and misused funds for credit card payments, rare coins, and political donations.
- The SEC seeks a receiver and asset freeze after First Liberty's late June shutdown, shocking investors and political circles amid ongoing investigations.
- Future court rulings will determine monetary remedies, as prosecutors have yet to decide on criminal charges, with potential political impacts on Georgia's Republican Party.
62 Articles
62 Articles
SEC accuses Georgia Republican of operating $140 million Ponzi scheme
The Securities and Exchange Commission accused a Georgia Republican of running an elaborate Ponzi scheme in a civil lawsuit filed Thursday that scammed 300 investors out of $140 million. Edwin Brant Frost IV is also accused of pocketing $17 million…
Prominent Georgia Republican Charges in Ponzi Scheme
"A prominent Georgia Republican was running a Ponzi scheme that defrauded 300 investors of at least $140 million, federal officials alleged in a complaint filed Thursday," the AP reports."The civil lawsuit by the U.S. Securities and Exchange Commission said First Liberty Building and Loan, contr
The Daily Gazette
arcamax.comSEC accuses GOP-linked Georgia lender of $140 million Ponzi scheme
Federal regulators filed a complaint Thursday seeking the seizure of Georgia lender First Liberty Building & Loan, accusing the financial institution with deep conservative political ties of operating a sweeping $140 million Ponzi scheme. In a lawsuit, the U.S. Securities…
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