Faith-Based Lender in Georgia Collapses Amid FBI Raid and Investor Panic

GEORGIA — A Georgia-based financial firm long touted as a faith-driven alternative to big banks has abruptly collapsed, triggering panic among retirees, donors, and small businesses who invested in its unregulated “First Liberty Notes.”

FBI Investigation and Civil Probe Spark Collapse

The trouble began on June 27, when First Liberty Building & Loan posted a notice halting all investor payouts and operations, citing cooperation with federal authorities. Just five days later, the firm’s offices were raided by the FBI, and the Georgia Secretary of State launched a civil-securities investigation into potential fraud, according to reporting by The Citizen.

Behind the company was a father-and-son duo, Brant Frost IV and V, who promised 8–13% returns through private lending notes marketed to church groups, conservative political circles, and small business owners.

However, unlike traditional banks, the company operated without FDIC insurance or oversight from the Office of the Comptroller of the Currency (OCC) — exposing investors to heightened risk.

Red Flags Ignored by Many

Industry experts now point to multiple red flags that were overlooked:

Too-good-to-be-true returns: With U.S. Treasury rates around 5%, offering 8–13% “safe” returns without FDIC backing raised immediate concerns about a Ponzi-style model.
Religious branding as cover: The company’s emphasis on faith and “Patriot values” may have made some investors less likely to question the risks or request audited financials.
No regulatory safety net: As a private lender, First Liberty existed in a gray area — not quite a bank, not quite a securities firm.

Investors and Donors Now Left Scrambling

According to reports, affected investors are now considered unsecured creditors, with estimated recovery rates possibly below 40% unless assets are clawed back through federal litigation.

Those impacted are advised to:

File a report with the FBI tip-line (case number available through public records).
Collect all documentation, including emails and note agreements, for future legal proceedings.

Meanwhile, local political campaigns and school board officials who accepted donations or salaries from First Liberty-related entities are being called upon to disclose all financial ties and return any funds where appropriate.

Impacts on Local Businesses and Borrowers

Small businesses that received bridge loans from the firm may now see those loans called in or sold to third parties.

Borrowers are urged to:

Continue payments as agreed.
Request written payoff balances before wiring funds.

Larger Takeaways for Georgia Residents

The collapse of First Liberty highlights broader risks tied to lightly regulated private lending:

Regulatory loopholes still allow firms to operate without SEC scrutiny, FDIC coverage, or public disclosures.
The “Patriot economy” marketing surged after public distrust of traditional banks — but often lacked transparency.
Basic due diligence remains essential: Verify registration, check for “Form D” filings, and demand audited financials before investing.

Have you or someone you know invested in First Liberty Notes or been impacted by its collapse? Share your story at saludastandard-sentinel.com — we’re tracking the human cost of financial fraud in our communities.