Latest news with #BrantFrostV
Yahoo
02-08-2025
- Business
- Yahoo
Son of First Liberty exec resigns from GOP committee
The Brief Brant Frost V resigned from the Georgia Republican State Committee and plans to step down as Coweta County GOP chair amid a federal investigation into his father's firm, First Liberty Building and Loan, which is accused of operating a $140 million Ponzi scheme. The SEC alleges First Liberty misused investor funds for political donations and personal enrichment, including more than $570,000 in political contributions and $5 million in payments to the Frost family. Georgia Secretary of State Brad Raffensperger has launched a state investigation and urged candidates to return campaign donations tied to the Frost family or the company. ATLANTA - Brant Frost V, the son of a financial executive at the center of a federal fraud investigation, has resigned from the Georgia Republican State Committee, party officials confirmed Friday. He also plans to step down as chairman of the Coweta County Republican Party, according to the Capitol Beat. What we know The move comes as First Liberty Building and Loan, a financial institution led by Frost's father, Edwin Brant Frost IV, faces a federal lawsuit filed by the U.S. Securities and Exchange Commission. The SEC accuses First Liberty of operating as a Ponzi scheme, raising at least $140 million from roughly 300 investors and using their funds for personal enrichment—including more than $570,000 in political donations and at least $5 million in payments to Frost and his family. PREVIOUS STORIES First Liberty Building & Loan Ponzi scheme: Receiver reports records in 'shambles' First Liberty Building & Loan Ponzi scheme: Rep. Scott blasts SEC's oversight Georgia Secretary of State calls for return of campaign funds linked to Ponzi scheme State ethic complaint filed against PAC linked to $140M Ponzi scheme Frost family under scrutiny after 'First Liberty' scandal SEC charges Georgia lending firm in $140M Ponzi scheme Georgia Secretary of State Brad Raffensperger launched a state investigation this week and called on political candidates to return donations linked to First Liberty or the Frost family, which has deep ties to Republican politics in Georgia. What they're saying State GOP Chairman Josh McKoon said in a statement that Frost's resignations are voluntary and not an admission of guilt. "We in no way consider his resignations as an indication of guilt in the pending legal issues of First Liberty Building and Loan," McKoon said. "We continue to stand with those who have suffered financial losses and hope for the speedy and full return of their investments." McKoon added that Frost's decision was made so he could focus on his family and the upcoming birth of his first child. A special election to choose his successor as Coweta County GOP chair will be held within 30 days. The backstory The Securities and Exchange Commission announced July 10 that it filed a civil complaint against First Liberty Building & Loan, LLC, a now-shuttered Newnan-based firm, and its founder, Edwin Brant Frost IV. The SEC alleges the firm misled investors into purchasing promissory notes and loan participation agreements with promised returns of up to 18 percent. According to the SEC, Frost and First Liberty told investors their money would be used to make short-term bridge loans to small businesses at high interest rates. Investors were led to believe that the loans were low-risk, typically repaid by borrowers through commercial or Small Business Administration financing. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
01-08-2025
- Business
- Yahoo
First Liberty founder's son resigns as head of Coweta GOP amid investigation into company
Brant Frost V, son of the founder of First Liberty Building and Loan, has resigned from his roles in the Georgia and Coweta County Republican Parties amid ongoing investigations into the company. The Georgia GOP announced Frost's resignation as federal and state agencies continue to investigate First Liberty Building and Loan, which is alleged to be a $140 million Ponzi scheme. The investigation is primarily focused on Edwin Brant Frost IV, the founder of the company. 'We in no way consider his resignations as an indication of guilt in the pending legal issues of First Liberty Building and Loan,' Georgia GOP Chair Josh McKoon said in a statement Thursday night. Federal and state investigators are scrutinizing First Liberty's business dealings, particularly those involving Brant Frost IV. The company is accused of targeting elderly investors with promises of high returns as part of a so-called 'Patriot Economy.' RELATED STORIES: Ethics commission goes after PAC tied to First Liberty Ponzi scheme, saying it violated GA law Receiver uncovers more than $1M in political 'donations' made by First Liberty owner, documents show Alabama is now investigating First Liberty after Ponzi scheme allegations came to light Court-ordered receivers set up website for victims of alleged First Liberty Ponzi scheme Receivers remove computers, documents from First Liberty after Ponzi scheme allegations 'Without getting into specifics, I can say that we are looking at anyone and everyone who had anything to do with encouraging investors to invest in this,' State Securities Division leader Noula Zaharis said. Gabe Sterling from the Georgia Secretary of State's Office emphasized the importance of identifying and assisting victims of the alleged scheme. 'The second secretary Raffensperger heard about this, he said to do whatever we need to do to find every victim and do everything we can to help those victims,' Sterling said. Federal investigators said their investigation is centered on Edwin Brant Frost IV. They have not made any direct mention of anyone else. Solve the daily Crossword
Winnipeg Free Press
31-07-2025
- Business
- Winnipeg Free Press
Ethics officials say Georgia PAC tied to Ponzi scheme illegally sought to influence elections
ATLANTA (AP) — Georgia's Ethics Commission says a political action committee linked to what federal investigators have called a Ponzi scheme illegally sought to influence elections. The complaint, filed Wednesday, says the spending came from the now-dissolved Georgia Republican Assembly PAC between 2021 and 2024. The committee was headed by Edwin Brant Frost V, the son of a man named in a U.S. Securities and Exchange Commission lawsuit as heading a scheme that took at least $140 million from hundreds of investors. A company named First Liberty Building & Loan promised investors big returns from making high-interest loans to businesses with short-term cash needs, but the SEC complaint says Edwin Brant Frost IV skimmed $17 million for himself, his relatives and their affiliated companies. More than $1 million of that went to political spending that entrenched the Frost family's influence in Republican politics in Georgia, Alabama, Maine and other states, investigators said. But while much is disclosed in campaign contributions, Wednesday's filing raises questions about whether the Frosts were spending on politics in undisclosed ways. The complaint says the PAC could legally give to candidates, but it never registered as an independent committee to directly advocate for and against candidates while spending more than $220,000 to do so. 'The ethics complaint filed today represent our initial charges against the Georgia Republican Assembly-PAC,' Ethics Commission Executive Director David Emadi said in a statement. 'Our investigation remains ongoing and additional charges may be coming at a future date, but we intend to aggressively pursue all violations of Georgia law committed by the GRA which illegally influenced elections in 2022 and 2024.' State Rep. Dale Washburn said undisclosed spending is pernicious. The Macon Republican was attacked in a 2022 mailing cited in the complaint, 'The whole dark money thing, where you can attack a candidate with a name that really doesn't represent who is behind the attack, I think that is a problem and it should be addressed,' Washburn said. No criminal charges have been announced in the alleged financial fraud. Brant Frost V wasn't named in the civil lawsuit filed by the SEC. However, the SEC in a subpoena filed last week sought information about activities of Brant Frost V as a First Liberty employee. The younger Frost made appearances on conservative talk shows promoting First Liberty, and some investors said they dealt with Brant Frost V when putting money into First Liberty. The younger Frost also garnered attention when he incorporated a new lending firm — Heartland Capital LLC. Brant Frost V filed the incorporation papers on June 26, the day before First Liberty announced it had gone bust. Brant Frost V didn't immediately respond to an email and a text message Wednesday. A lawyer for Brant Frost IV didn't respond to an email. Conflict with another political group The PAC shared a name with the Georgia Republican Assembly, a group that seeks to push the Republican Party further to the right. The assembly often endorsed and the PAC often contributed to insurgent Republicans who opposed established GOP leaders. But assembly President Nathaniel Darnell said that while the GRA authorized and promoted the PAC, it was a 'totally separate entity.' 'The entire time the PAC was in operation, the Frosts controlled it with zero oversight from the GRA organization,' said Darnell, who said he personally lost an unspecified amount of money invested in First Liberty. The Frosts had a falling-out with the GRA following this year's state Republican convention. They and other supporters of Georgia GOP Chairman Josh McKoon publicly resigned after the GRA expelled Katie Frost, the sister of Brant Frost V. Katie Frost led a nominating committee that recommended delegates vote against a number of GRA-endorsed party officer candidates. Campaign disclosures show the Frosts and associated companies donated a majority of the PAC's money. One focus was supporting Republican challengers who opposed late state House Speaker David Ralston, whom the GRA viewed as a corrupt moderate. But the complaint shows the PAC also didn't disclose spending in school board races in Coweta County, where the Frosts live, and in a county commissioner race in neighboring Meriwether County. Washburn said he believed he was targeted over his support for Ralston and for a bill that would have allowed some immigrants to pay in-state tuition at Georgia universities and colleges. 'I was kind of taken aback by those mailers when they happened and was honestly angered by them because I thought they were very deceitful and misrepresented some things,' he said.
Hamilton Spectator
31-07-2025
- Business
- Hamilton Spectator
Ethics officials say Georgia PAC tied to Ponzi scheme illegally sought to influence elections
ATLANTA (AP) — Georgia's Ethics Commission says a political action committee linked to what federal investigators have called a Ponzi scheme illegally sought to influence elections. The complaint, filed Wednesday, says the spending came from the now-dissolved Georgia Republican Assembly PAC between 2021 and 2024. The committee was headed by Edwin Brant Frost V, the son of a man named in a U.S. Securities and Exchange Commission lawsuit as heading a scheme that took at least $140 million from hundreds of investors. A company named First Liberty Building & Loan promised investors big returns from making high-interest loans to businesses with short-term cash needs, but the SEC complaint says Edwin Brant Frost IV skimmed $17 million for himself, his relatives and their affiliated companies. More than $1 million of that went to political spending that entrenched the Frost family's influence in Republican politics in Georgia, Alabama, Maine and other states, investigators said. But while much is disclosed in campaign contributions, Wednesday's filing raises questions about whether the Frosts were spending on politics in undisclosed ways. The complaint says the PAC could legally give to candidates, but it never registered as an independent committee to directly advocate for and against candidates while spending more than $220,000 to do so. 'The ethics complaint filed today represent our initial charges against the Georgia Republican Assembly-PAC,' Ethics Commission Executive Director David Emadi said in a statement. 'Our investigation remains ongoing and additional charges may be coming at a future date, but we intend to aggressively pursue all violations of Georgia law committed by the GRA which illegally influenced elections in 2022 and 2024.' State Rep. Dale Washburn said undisclosed spending is pernicious. The Macon Republican was attacked in a 2022 mailing cited in the complaint, 'The whole dark money thing, where you can attack a candidate with a name that really doesn't represent who is behind the attack, I think that is a problem and it should be addressed,' Washburn said. No criminal charges have been announced in the alleged financial fraud. Brant Frost V wasn't named in the civil lawsuit filed by the SEC. However, the SEC in a subpoena filed last week sought information about activities of Brant Frost V as a First Liberty employee. The younger Frost made appearances on conservative talk shows promoting First Liberty, and some investors said they dealt with Brant Frost V when putting money into First Liberty. The younger Frost also garnered attention when he incorporated a new lending firm — Heartland Capital LLC. Brant Frost V filed the incorporation papers on June 26, the day before First Liberty announced it had gone bust. Brant Frost V didn't immediately respond to an email and a text message Wednesday. A lawyer for Brant Frost IV didn't respond to an email. Conflict with another political group The PAC shared a name with the Georgia Republican Assembly, a group that seeks to push the Republican Party further to the right . The assembly often endorsed and the PAC often contributed to insurgent Republicans who opposed established GOP leaders. But assembly President Nathaniel Darnell said that while the GRA authorized and promoted the PAC, it was a 'totally separate entity.' 'The entire time the PAC was in operation, the Frosts controlled it with zero oversight from the GRA organization,' said Darnell, who said he personally lost an unspecified amount of money invested in First Liberty. The Frosts had a falling-out with the GRA following this year's state Republican convention . They and other supporters of Georgia GOP Chairman Josh McKoon publicly resigned after the GRA expelled Katie Frost, the sister of Brant Frost V. Katie Frost led a nominating committee that recommended delegates vote against a number of GRA-endorsed party officer candidates. Campaign disclosures show the Frosts and associated companies donated a majority of the PAC's money. One focus was supporting Republican challengers who opposed late state House Speaker David Ralston , whom the GRA viewed as a corrupt moderate. But the complaint shows the PAC also didn't disclose spending in school board races in Coweta County, where the Frosts live, and in a county commissioner race in neighboring Meriwether County. Washburn said he believed he was targeted over his support for Ralston and for a bill that would have allowed some immigrants to pay in-state tuition at Georgia universities and colleges. 'I was kind of taken aback by those mailers when they happened and was honestly angered by them because I thought they were very deceitful and misrepresented some things,' he said. Error! Sorry, there was an error processing your request. There was a problem with the recaptcha. Please try again. You may unsubscribe at any time. By signing up, you agree to our terms of use and privacy policy . This site is protected by reCAPTCHA and the Google privacy policy and terms of service apply. Want more of the latest from us? Sign up for more at our newsletter page .
