Latest news with #EdwinBrantFrostIV
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
31-07-2025
- Business
- Yahoo
State ethic complaint filed against PAC linked to $140M Ponzi scheme
The Brief The Georgia Government Transparency and Campaign Finance Commission filed a complaint against the Georgia Republican Assembly PAC for spending over $220,000 to influence elections without registering as an independent committee, violating campaign finance laws. Edwin Brant Frost IV is accused by the SEC of running a Ponzi scheme, diverting millions for personal use, including political donations, with over $1 million of investor money reportedly used for political activities. The PAC, controlled by the Frost family, supported candidates opposing House Speaker David Ralston and engaged in undisclosed spending in local races, while the SEC's civil case against Frost IV is pending, with emergency relief measures in place. ATLANTA - Georgia's state ethics watchdog has filed a complaint against a political action committee linked to a $140 million investment fraud, alleging it illegally tried to influence elections while failing to follow campaign finance laws. Georgia Republican Assembly PAC ethics complaint What we know The complaint, filed Wednesday by the Georgia Government Transparency and Campaign Finance Commission, says the now-dissolved Georgia Republican Assembly PAC spent more than $220,000 between 2021 and 2024 to directly advocate for or against political candidates without registering as an independent committee. Such activity would violate Georgia campaign finance rules. The PAC was chaired by Edwin Brant Frost V, whose father, Edwin Brant Frost IV, is accused by the U.S. Securities and Exchange Commission of running a Ponzi scheme through a company called First Liberty Building & Loan. Federal investigators say Frost IV raised funds from around 300 investors, promising high returns through short-term loans to businesses. Instead, the SEC alleges Frost IV used new investments to pay earlier ones and diverted millions for personal use, including over $570,000 in political donations. More than $1 million in investor money reportedly went toward political activity, strengthening the Frost family's influence in Republican politics across Georgia, Alabama, Maine and other states. Some of that spending was disclosed in public records, but the Ethics Commission says a portion was not. Claims of 'dark money' What they're saying "The ethics complaint filed today represents our initial charges against the Georgia Republican Assembly-PAC," said Ethics Commission Executive Director David Emadi. "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, a Macon Republican, said he was targeted by the PAC in a 2022 mailer and believes the lack of transparency is harmful. "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. Washburn added that he believed he was targeted due to his support for the late House Speaker David Ralston and a bill that would have granted in-state tuition to some undocumented immigrants. "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. Campaign disclosures show that most of the PAC's funding came from the Frost family and affiliated businesses. The PAC frequently supported Republican candidates who opposed Ralston, whom the Georgia Republican Assembly (GRA) considered a corrupt moderate. The complaint also notes undisclosed spending in school board races in Coweta County, where the Frosts reside, and in a Meriwether County commission race. Frost splits with GRA Dig deeper Although the PAC shared a name with the Georgia Republican Assembly, the two organizations were separate, according to GRA President Nathaniel Darnell. He said the PAC was authorized and promoted by the GRA but operated independently under the Frosts' control. "The entire time the PAC was in operation, the Frosts controlled it with zero oversight from the GRA organization," said Darnell, who also disclosed that he personally lost money invested in First Liberty. The Frosts fell out with the GRA following the state Republican convention earlier this year, when the group expelled Katie Frost, sister of Brant Frost V. She had chaired a nominating committee that advised against several GRA-backed candidates. Brant Frost V and his supporters resigned shortly after. First Liberty Ponzi scheme The backstory Although no criminal charges have been announced, the SEC's civil case against Frost IV is pending in the U.S. District Court for the Northern District of Georgia. Investigators say Frost IV misappropriated investor funds for rare coins, luxury vacations, credit card bills, and political donations. He consented to emergency relief measures including an asset freeze and expedited discovery, without admitting wrongdoing. Brant Frost V has not been named in the SEC's lawsuit, but a subpoena filed last week seeks information about his activities as an employee of First Liberty. He also incorporated a new company, Heartland Capital LLC, on June 26—one day before First Liberty declared bankruptcy. No further comment What we don't know The younger Frost promoted First Liberty on conservative talk shows and interacted directly with some investors, according to the SEC. He did not respond to messages seeking comment. A lawyer for his father also did not reply, but previously took responsibility in a statement. The Source The Associated Press and FOX News provided the details for this article. Previous FOX 5 Atlanta reporting was also used. Additional details were sourced from the Georgia Government Transparency and Campaign Finance Commission.
Fox News
11-07-2025
- Business
- Fox News
Georgia man accused by SEC of perpetrating Ponzi scheme says he takes 'full responsibility' for his actions
The U.S. Securities and Exchange Commission filed a complaint against Edwin Brant Frost IV of Georgia and his First Liberty Building & Loan, LLC, alleging the business was operated as a Ponzi scheme. The document asserts that Frost and his company "raised at least $140 million from approximately 300 investors through the sale of loan participation agreements and promissory notes that offered annual returns of 8% to 18%. "As of 2021, approximately 80% of interest and principal payments to investors were sourced from new investor funds, and not from Bridge Loan interest payments or principal repayments," the SEC complaint claims. The SEC alleged Frost spent investor funds in various ways, some of which included making more than $570,000 in political donations, buying a $20,800 watch and making "over $2.4 million in payments to credit cards issued to him and his business entities." The Associated Press indicated that Frost is a Republican. "The promise of a high rate of return on an investment is a red flag that should make all potential investors think twice or maybe even three times before investing their money," said Justin C. Jeffries, associate director of enforcement for the SEC's Atlanta regional office, according to a press release. "Unfortunately, we've seen this movie before — bad actors luring investors with promises of seemingly over-generous returns — and it does not end well." Lawyer Joshua Mayes of Robbins Alloy Belinfante Littlefield LLC is representing Frost in the matter, and he provided Fox News Digital with a statement from Frost, who admitted he had misled people. "I take full responsibility for my actions and am resolved to spend the rest of my life trying to repay as much as I can to the many people I misled and let down. I will be cooperating with the receiver and federal authorities and ask that everyone allow the receiver time to sort things out and do his best to repair the damage I created," Frost noted in the statement. "I would like to apologize personally to those I have harmed, but I am under restrictions which prevent me from doing so. While I do not deserve it, I am grateful for the support of friends and family as I confront this situation I created."
New York Times
11-07-2025
- Business
- New York Times
S.E.C. Accuses Prominent Georgia Republican of Running Ponzi Scheme
The Securities and Exchange Commission on Thursday accused Edwin Brant Frost IV, a high-profile Republican in Georgia, of running a Ponzi scheme that defrauded 300 investors of at least $140 million. The civil complaint, filed in a federal court in Georgia, accused Mr. Frost of violating antifraud laws and misappropriating investor money via the firm he founded, First Liberty Building and Loan. It also accused Mr. Frost, 67, a donor to Republican causes and a prominent backer of the party in Georgia, of using investor funds to give more than $570,000 in political donations. It did not say to whom. In a statement shared by his lawyer, Joshua Mayes, Mr. Frost said he took 'full responsibility for my actions' and would work to repay investors. The S.E.C. said on Thursday that Mr. Frost agreed to its proposed remedies, including the freezing of assets, without admitting or denying its allegations. The complaint said that Mr. Frost told investors their money would be used for short-term 'bridge' loans for companies while they secured longer-term financing. They were promised significant returns, in some cases as high as 18 percent. Want all of The Times? Subscribe.
Yahoo
11-07-2025
- Business
- Yahoo
Banker accused in $140 million Ponzi scheme bought a Patek Philippe watch, jaunts to Kennebunkport, and put millions on his credit cards, SEC says
A politically connected Georgia financier has been accused of running a multi-million Ponzi scheme that was helped along through targeted advertisements on right-wing and conservative media channeling the 'Patriot Economy.' The SEC alleged in a lawsuit filed on Thursday that Edwin Brant Frost IV and his company First Liberty Building & Loan have been paying investors back for years by soliciting rounds of funds from new investors—the defining mark of a Ponzi operation. The Securities and Exchange Commission has accused Edwin Brant Frost IV and his private lending company First Liberty Building & Loan with allegedly presiding over a sophisticated $140 million Ponzi scheme, according to a civil complaint filed on Thursday in federal court in Atlanta. Authorities claim Frost, 67, specifically targeted Republican activists and conservative Christian investors through a network of right-wing media outlets. The Georgia financial firm's now-defunct website calls out its advertisements 'as heard on' conservative media including Erick Erickson, Hugh Hewitt, and Charlie Kirk's shows. First Liberty abruptly shut down late last month posting a note to clients on its website stating that its investments, payments, and programs were 'indefinitely suspended.' 'First Liberty is cooperating with federal authorities as part of an effort to accomplish an orderly wind-up of the business,' the message states. 'First Liberty employees are not authorized to make any further communications at this time regarding the ongoing situation, and no one at the company will be available to answer phone calls or respond to email inquiries.' Attempts to reach Frost were unsuccessful. According to the complaint, Frost and First Liberty raised at least $140 million from the sale of loan participation agreements and promissory notes to at least 300 investors. The alleged scheme began back in 2014 with Frost raising capital through friends and family. They were first offered loan participation agreements, which are contracts where investors pool money together to fund a single loan with each participant owning a percentage. They were later offered promissory notes—basically IOUs— in which investors were lending money to the company itself. Brant allegedly told investors the funds would be used to make short-term bridge loans at high interest rates. Frost and First Liberty allegedly told investors 100% of the proceeds from loan agreements and promissory notes would be used to fund bridge loans and that investors would be reap gains from the repayment of the bridge loans and the interest paid on them. The friends and family program offered 14% to 18% returns, and the notes an annual return of 8% to 13%. The SEC claims Frost told investors orally he did not take fees out of the investor funds. The SEC's complaint alleges nearly all of these representations were false. In 2021, First Liberty began operating as a Ponzi scheme, the complaint states, with about 80% of the interest and payments to investors sourced from new investor funds—the hallmark of a Ponzi scheme. 'The promise of a high rate of return on an investment is a red flag that should make all potential investors think twice or maybe even three times before investing their money,' said Justin C. Jeffries, Associate Director of Enforcement for the SEC's Atlanta Regional Office in a statement. 'Unfortunately, we've seen this movie before—bad actors luring investors with promises of seemingly over-generous returns—and it does not end well.' In 2024, the SEC claims Frost expanded the financial firm's reach by offering and selling the promissory notes to the public on the radio, the firm's website and on podcasts and other programs. The company marketed itself as a fundamental piece of what it called the 'patriot economy.' But, according to the SEC, the alleged scheme had already unraveled. First Liberty allegedly operated at a deficit each year from 2021 through May 30, 2025 and instead functioned as a Ponzi operation. The regulator claims Frost even allegedly misled current investors about the security of their existing investments to coax more funding out of them. During the alleged scheme, the SEC accused Frost of living lavishly off investors' assets. Frost allegedly spent $230,000 to rent a vacation home in Kennebunkport, Maine and $140,000 on jewelry. He also allegedly snagged a $20,800 Patek Philippe watch with investor money and doled out $335,000 to a rare coin dealer. He also allegedly paid $2.4 million on his credit cards with investor funds and made $570,000 in political donations. The SEC alleged that nine days after commission staffers interviewed Frost, he withdrew $100,000 from company accounts containing investor funds and wrote $210,875 in checks from company accounts to a business that specializes in selling gold coins. The SEC has frozen Frost's assets. Messages to Erickson, Hewitt, and Kirk were not immediately returned. In a message on the website, First Liberty wrote: 'First Liberty hopes to provide additional information and updates in the near future regarding the status of the company's efforts to effectuate an orderly wind-up of the business.' This story was originally featured on 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
