A Georgia lending company that sold to Republicans and faith-based groups suddenly closed its doors.
The state has launched an investigation, the federal government has filed a complaint, and a recent report says it is worried investors will not see the money again.
According to WSB-TVfounders Brant Frost IV and Brant Frost V promoted the company as part of the “Patriot Economy” and targeted conservative media investors. They too Shared Video On your YouTube channel.
First Liberty Building and Loan A notification has been posted on the website Recently, it has halted all business operations and has suspended interest payments on existing promise notes, bridge loan participation benefits, and other investment programs indefinitely.
The company said it is “working with federal authorities as part of its efforts to achieve orderly lifting the business.”
The Securities and Exchange Commission (SEC) filed a lawsuit against Edwin Blunt Frost IV on July 10, accusing approximately 300 investors of running a Ponzi scheme that costs at least $140 million.
The SEC said the initial freedom “provided a return of up to 18%.”
“The complaint also said that while some investor funds were used to finance the bridge, those loans did not serve as representatives, most of which ultimately stopped paying interest by default,” the press release said. Frost has been accused of diverting investors’ funds for personal use, including $2.4 million in credit card payments, $335,000 to rare coin dealers and $230,000 on family vacations.
“The high return on investment promise is a red flag that ensures that all potential investors think twice or three times before investing their money,” said Justin C. Jeffries, associate director of the Executive Association of the SEC’s Atlanta Regional Office. “Unfortunately, we’ve seen this film before. Bad actors invite investors to promise a seemingly overreachable profit – that doesn’t work.”
Banks and credit unions are subject to regulations protecting Americans, but the first freedom was lending companies rather than banks.
Your bank account is covered by the Federal Deposit Insurance Corporation (FDIC) for up to $250,000 in the event of a bank failure. If the brokerage company is a member of the Securities Investor Protection Corporation (SIPC), the client will be protected by up to $500,000 in the event of a corporate failure.
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The first Liberty Building and Loan was engaged in some red flag actions that investors should be aware of.
SEC’s “Red flag on investment fraud checklist” These warning signs are included: the sound of “not true, the better”; big wealth and guaranteed returns; “risk-free” investment opportunities; unauthorized investment experts; offensive sellers who may offer exaggerated qualifications; pitches that “everyone is buying it”; pressure to invest now; over the top; and we ask for praise for testing for zeros. Wiring to overseas cards, gift cards, or wiring to wires or personal accounts.
The best way to avoid fraud is to thoroughly research your investments and thoroughly research the investment experts you work for. The SEC provides an overview of the important questions to ask before investing.
First, check if the seller is licensed. If you are working with a broker, you can view the background and qualifications for the Financial Industry Regulatory Authority (FINRA) BrokerCheck website. Check out the investment advisor’s public website. If you are working with an investment advisory company, please use the SEC Action Lookup website to see your actions against individuals. If you have any questions, you can call the SEC Investor Support Line (800) 732-0330.
Second, we investigate the investment and whether it is registered. Securities offers or sales must be registered with the SEC or exempt from registration. Use SEC’s Edgar database to see if your investment is registered, or call the SEC’s Investor Support Line.
Third, the SEC advises you to ask yourself if you understand investment. Investors should carefully read investment prospectus or disclosure statements to understand how investments work and how they make money.
It remains unclear what will happen to hundreds of investors at First Liberty Building and Loan. The court has appointed recipients to carry out investigation and recovery efforts. He has I created a website Update investors.
in Letters to investorsReceiver S. Gregory Hayes said it was “too early to estimate the amount distributed.”
He said recently FOX 5“The record was tough… part of a report showing that the principal has been repaid even if the loan is not repaid.” Approximately $1.2 million in cash assets have been frozen.
At least one investment loss lawyer is investigating whether a registered sales agent has sold First Liberty investments. a Posts from Wolper Law Firm “The registered sales agent worked for a brokerage company that was a FINRA member, which could be financially liable for the fraudulent conduct of registered financial professionals,” he said.
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This article is for information only and should not be construed as advice. It is provided without warranty of any kind.
