A Georgia-based businessman and GOP supporter, Edwin Brand Frost IV, is under investigation for allegedly perpetrating a $140 million Ponzi scheme that defrauded hundreds of investors. According to the Securities and Exchange Commission (SEC), Frost misappropriated investor assets, including funds used for political donations.
Frost’s company, Liberty Building & Loan, has been accused of operating a Ponzi scheme, with over 300 investors losing more than $140 million. The SEC claims that Frost told investors their funds would be used to make short-term small business loans, but in reality, the money was being misappropriated or used to make Ponzi-style payments to existing investors.
Frost’s statement acknowledges his responsibility for the actions and expresses a commitment to paying back investors. The Georgia Secretary of State’s office is also investigating, and an FBI official confirmed that the agency is aware of the allegations.
A judge has ordered the defendants’ assets to be frozen, with the SEC consenting to the move without admitting or denying the allegations.
Source: https://abcnews.go.com/US/officials-probing-georgia-gop-donor-accused-140-million/story?id=123693671