Overview

• The SEC filed a civil complaint on July 10 accusing Brant Frost IV and First Liberty Building and Loan of defrauding 300 investors in a $140 million Ponzi operation.
• The alleged scheme was marketed to Republican activists and conservative Christian investors through right-wing media under the banner of a “patriot economy.”
• First Liberty halted lending and payments in late June and is cooperating with federal authorities in an orderly wind-down of its business.
• Regulators have frozen the company’s assets and the Georgia Secretary of State’s office has opened a securities law investigation into First Liberty’s practices.
• The SEC alleges Frost misappropriated over $19 million for personal luxury expenses and political donations, and investors now await the appointment of a receiver to recover their funds.