Georgia Loan Company Owner Accused of Running $140M Ponzi Scheme That Targeted Faith-Based Investors
GEORGIA — A prominent Georgia financial firm run by the Frost family has been charged with operating a massive Ponzi scheme that defrauded over 300 investors out of $140 million, according to a federal complaint released by the U.S. Securities and Exchange Commission (SEC) on July 10.
The SEC announced that it is pursuing emergency relief and asset freezes against First Liberty Building & Loan, a company based in Newnan, Georgia, and its founder, Edwin Brant Frost IV. The allegations claim that since at least 2021, the company used new investor money to pay off older investors, a classic sign of Ponzi scheme activity.
Allegations Detail Lavish Personal Spending
The federal complaint states that Frost misused millions in investor money for personal gain, including:
- $2.4 million in credit card payments
- $335,000 spent at a rare coin dealer
- $230,000 used for family vacations
According to SEC documents, the company lured investors with promises of up to 18% returns. These returns were marketed through religious and patriotic messaging, which reportedly made the scheme more appealing to conservative Christian investors across the state.
“The promise of a high rate of return on an investment is a red flag,” said Justin C. Jeffries, Associate Director of Enforcement at the SEC’s Atlanta office. “Unfortunately, we’ve seen this movie before — bad actors luring investors with promises of seemingly over-generous returns — and it does not end well.”
Frost Family Company Shut Down
The situation escalated in early July when First Liberty abruptly shut its doors. As reported by political strategist Kylie Jane Kremer, the company began cooperating with federal investigators. Multiple sources confirmed that the federal government has seized company assets as part of the ongoing probe.
Frost and his company are now facing:
- A permanent asset freeze
- A full disgorgement of ill-gotten gains
- Potential court-ordered restitution to investors
The SEC’s complaint, filed in the U.S. District Court for the Northern District of Georgia, alleges violations of federal securities laws, including the antifraud provisions.
Investors Misled With Faith-Based Messaging
The scheme operated under the banner of Christian values and “American patriotism,” with First Liberty advertising itself as a conservative, family-run institution dedicated to helping local communities thrive.
Yet, many of those same communities are now reeling after realizing their investments — often their life savings or retirement funds — were funneled into a house of cards.
As shown in the SEC release, most of the loans First Liberty made using investor funds either defaulted or were misrepresented, failing to generate the returns that were promised.
What Happens Next
The case is ongoing. While Frost and his legal team have not publicly commented, they have not admitted nor denied the allegations and have agreed to some of the SEC’s emergency demands, including monetary remedies to be decided in court later.
Investors involved in the scheme are being urged to document their losses and cooperate with investigators.
Have you or someone you know been impacted by this investigation in Georgia? Share your story in the comments — SaludaStandard-Sentinel.com is committed to exposing financial wrongdoing in our communities.
