A prominent Georgia Republican, Brant Frost IV, is accused of running a massive Ponzi scheme that defrauded 300 investors of at least $140 million. The US Securities and Exchange Commission (SEC) has filed a civil lawsuit against First Liberty Building and Loan, which was controlled by Frost, alleging that it lied to investors about its business practices.
According to the SEC, First Liberty raised more money from investors than it actually lent out, using the funds to repay earlier investors and line the pockets of Frost, his family, and affiliated companies. The company’s assets were dwindling, with only $2.67 million in cash as of May 30.
Frost allegedly spent lavishly on personal items, including $160,000 on jewelry, $335,000 with a rare coin dealer, and $320,000 on a vacation home in Kennebunkport, Maine. The SEC also found that Frost continued to write checks after being under investigation.
The scheme’s collapse has significant implications for Georgia Republican politics, potentially cutting off funding to far-right candidates supported by Frost and his family. Investigators have discovered that Frost spent $570,000 from investor funds on political contributions.
As the case unfolds, regulators are seeking to claw back money from Frost and associated companies. The SEC is also investigating whether Frost will face criminal charges, although federal prosecutors have declined to comment on the matter.
Source: https://www.theguardian.com/us-news/2025/jul/11/georgia-republican-ponzi-scheme