Sec says the boss of the Georgia Republican Bank has scam 300 investors with a $140 million Ponzi scheme



A prominent Georgian Republican was implementing a Ponzi scheme that scams 300 investors, at least $140 million, federal officials said. Complaints filed Thursday.

Civil lawsuits by US Securities and Trade Commission The first Liberty Building and Loan, managed by Brant Frost IV, said it lied to investors about a business that provides high profit loans to businesses. Instead, investigators said they raised more money to pay back previous investors.

Frost is said to have received more than $19 million in investor funds for himself, his family and affiliates, even if the business was destroyed. Frost also allegedly spent $320,000 on renting a villa in Kennebunkport, Maine over several years.

The SEC said Frost continues to write checks even after the committee began its investigation.

Fast Liberty last month created loans and said it would stop paying interest and principal to investors on these loans. The company said it had not responded to calls or emails.

Fast Liberty did not respond to emails seeking comment and no one attended the office Thursday evening in Newnan, a southwestern suburb of Atlanta. The attorney who served as a registered agent for the company’s corporate purpose said he had no information previously.

The collapse has shaken up the religious and political networks that businesses have attracted investors. It could also influence the state’s Republican politics and cut off funding for far-right candidates that Frost and his family have supported. Investigators said Frost spent $570,000 on political contributions from investor funds.

The business was only $2.67 million in cash as of May 30, but regulators are trying to keep frost and money from affiliates. When 300 investors paid $140 million, the average investor spent nearly $500,000.

Fast Liberty said it had loaned businesses that needed cash while waiting for more traditional loans from the U.S. Small Business Administration. It charged high interest rates, according to documents obtained by the Associated Press. First Liberty has promised investors a similarly high return rate. 16% on an 18% loan.

Over the past few months, the business has promoted heavily on conservative radio shows that promise “wall street returns for main street investors.”

“The high return on investment promise is a red flag that should make every potential investor think twice or three times before investing their money,” Justin C. Jeffries, associate director of the Executive Association of the SEC’s Atlanta Regional Office, said in a statement.

The company has stated that it is “working with federal authorities as part of its efforts to achieve an orderly unwinded business.” The SEC said Frost and his company agreed to the SEC’s enforcement action “with financial relief as determined by the court at a later date.”

The SEC says there are loans to businesses, but 90% of these companies say they are default. By 2021, the company was operating as a Ponzi scheme, the complaint said, even if Frost retracted the increased amount.

The business has been investigated by the Georgia Secretary for a possible violation of the securities law.

The 2023 document obtained by the Associated Press was titled “Promised Notes,” and the sinner said that the person issuing the Promised Notes is to be registered with a Georgia Securities official.

The offender encouraged victims to contact the state securities department.

Federal prosecutors declined to comment on whether they are considering criminal charges. Sometimes, both SEC civil and federal criminal cases are filed against investment fraud.

Frost was a key player in Georgian politics since 1988 when he coordinated the televangelist. Pat Robertsons Republican presidential bid in the state. His son, Blunt Frost V, is chairman of the Coweta County Republican Party, based there and former vice-chairman of the state Republican Party. Her daughter, Katie Frost, is Republican chair of the Third Congressional District, and includes other areas of Coweta County and southwest Atlanta.

At the state Republican Congress last month, Katie Frost chaired a nomination committee that encourages representatives to be re-elected as National Party Chairman. Josh McConne. The representative followed that recommendation and rejected many rebel candidates.

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