A well-known Republican from Georgia is accused of running a massive Ponzi scheme that cheated around 300 investors out of at least $140 million, according to a federal lawsuit filed last week. The case centers on First Liberty Building and Loan, a company controlled by Brant Frost IV, which allegedly misled people about its business and used new investors’ money to pay older ones.
The U.S. Securities and Exchange Commission (SEC) says First Liberty claimed to make high-interest loans to businesses waiting for SBA funding. But instead of genuine loans, most of the companies defaulted. By 2021, the operation was essentially a Ponzi scheme. Frost reportedly took more than $19 million for himself and his family, spending large sums on jewelry, rare coins, and even renting a vacation home in Kennebunkport, Maine—an area famously linked to the Bush family.
Despite the ongoing SEC investigation, Frost continued writing checks. First Liberty stopped making loans and stopped paying back investors last month, and the company has been unreachable since. Its office in Newnan, a suburb of Atlanta, was empty recently, and a corporate lawyer said he had no updates.
The scheme hit hard in Georgia’s religious and political circles, especially among far-right groups that backed candidates favored by Frost and his family. The SEC notes that Frost funneled about $570,000 of investor money into political campaigns. This could shake up the state’s Republican scene since Frost’s family members hold key party positions in Coweta County and the surrounding congressional district.
At the time of the SEC report, First Liberty had just $2.67 million in cash left. That’s a tiny fraction compared to the $140 million investors lost, which averages out to nearly half a million dollars per investor. The SEC is working to recover funds from Frost and related parties.
The Georgia secretary of state is also investigating possible violations of securities laws. Officials emphasize that anyone offering promissory notes must be registered with state securities regulators and urge victims to come forward. While federal prosecutors have not said whether criminal charges will follow, such scams often lead to both civil and criminal actions.
Brant Frost IV has been active in Georgia politics for decades, going back to coordinating televangelist Pat Robertson’s 1988 presidential bid in the state. Now, with this case unfolding, his political influence and that of his family face serious questions.
This developing story serves as a reminder to be cautious of investments promising unusually high returns, especially when they sound too good to be true. The SEC’s associate enforcement director in Atlanta warns that such offers should raise immediate red flags for anyone considering putting down their money.