A high-profile Republican from Georgia, Edwin Brant Frost IV, has been accused by the Securities and Exchange Commission (S.E.C.) of running a massive Ponzi scheme that defrauded 300 investors of at least $140 million.
Frost, 67, is alleged to have used investor funds for personal expenses, including luxury purchases and political donations. He claimed responsibility for his actions in a statement shared by his lawyer, saying he took “full responsibility” for his mistakes.
The S.E.C. accused Frost of misappropriating investor money through his firm, First Liberty Building and Loan, which promised high returns to investors but actually used new funds to pay existing investors. The agency also said that many borrowers did not repay their loans, and that Frost used $5 million in investor funds for personal expenses.
Frost’s company, First Liberty, raised at least $140 million between 2014 and June 2025, offering high returns through a private program. However, the S.E.C. says this was a “red flag,” indicating potential wrongdoing.
The case highlights concerns over the lack of oversight in the financial industry and the ability of wealthy individuals to use their influence for personal gain. The Department of Justice declined to comment on whether it would seek criminal charges against Frost.
Source: https://www.nytimes.com/2025/07/11/us/politics/brant-frost-first-liberty-ponzi-scheme.html