A prominent Georgia Republican, Brant Frost IV, has apologized for running a $140 million Ponzi scheme and has had his assets frozen by a federal judge. The scheme, operated through First Liberty Building and Loan, lied to investors about its business, promising high-interest loans but mostly resulting in sour loans and repayment of earlier investors’ funds using new investor money.
Frost took millions from the scheme for himself and his family, including $17 million, while also spending lavishly on personal items such as jewelry, watches, and vacation homes. He is accused of making false statements to investigators after initially being questioned about the scheme in May.
The Securities and Exchange Commission (SEC) has filed a civil lawsuit against Frost and First Liberty Building and Loan, claiming that they misled investors with promises of high returns and charged excessive interest rates. The judge appointed financial consultant S. Gregory Hays as receiver to try to recover cash for investors.
Frost has cooperated with the SEC and federal authorities, but no criminal charges have been announced by federal prosecutors. The business’s collapse could have ramifications in state Republican politics, potentially cutting off funding to far-right candidates that Frost and his family have supported.
Source: https://apnews.com/article/brant-frost-iv-ponzi-scheme-first-liberty-80922ed266e203bd77ed1a5c4244d482