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23m ago

SEC Sues GOP-Linked Georgia Lender Over $140 Million Ponzi Scheme

SEC action includes freezing Brant Frost IV’s assets with a court petition to appoint a receiver following First Liberty’s operational halt.

The office of First Liberty Building and Loan, which federal officials allege was a Ponzi scheme, is shown on Thursday, July 10, 2025, in Newnan, Ga. (AP Photo/Jeff Amy)
The office of First Liberty Building and Loan, which federal officials allege was a Ponzi scheme, is shown on Thursday, July 10, 2025 in Newnan, Ga. (AP Photo/Jeff Amy)
The banker allegedly used investor funds to buy a $20,000 luxury watch, according to the SEC.
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Overview

  • The SEC filed a civil complaint on July 10 seeking to seize First Liberty’s assets and place the firm under a court-appointed receiver to recover investor funds.
  • Regulators allege First Liberty Building & Loan used new investments to pay returns to earlier investors in a Ponzi scheme that amassed at least $140 million.
  • Brant Frost IV is accused of pocketing over $19 million of investor money on luxury items such as jewelry, a Patek Philippe watch, vacation rentals, rare coins, credit card payments, and political donations.
  • First Liberty abruptly suspended all operations in late June and posted a notice saying it was cooperating with federal authorities in an orderly wind-down.
  • The firm had pitched promissory notes promising up to 13 percent annual returns to conservative and Christian investors under a “patriot economy” banner promoted by right-wing media figures.