The Securities and Exchange Commission (SEC) has filed a civil complaint against Edwin Brant Frost IV, a prominent Republican figure in Georgia, accusing him of orchestrating a Ponzi scheme that defrauded approximately 300 investors of at least $140 million.
The complaint, submitted to a federal court in Georgia, alleges that Frost violated antifraud laws and misappropriated investor funds through his company, First Liberty Building and Loan. It further claims that Frost, 67, used investor money to make over $570,000 in political donations, although the recipients of these funds were not disclosed.
In a statement released through his lawyer, Frost expressed his willingness to take “full responsibility for my actions” and indicated his intention to repay the affected investors.
According to the SEC, Frost has agreed to the proposed remedies, which include the freezing of his assets, without admitting or denying the allegations made against him. The complaint details that Frost assured investors their money would be utilized for short-term “bridge” loans, promising returns as high as 18 percent. However, the SEC claims many borrowers failed to repay these loans, prompting Frost to use funds from new investors to pay returns to earlier investors.
The complaint asserts that First Liberty began operating as a Ponzi scheme no later than 2021. It also states that Frost misappropriated over $5 million in investor funds for personal expenses, including luxury jewelry and a vacation rental in Maine.
First Liberty announced on its website that it ceased operations as of June 27 and is cooperating with federal authorities to wind down the business, describing its investment programs as “indefinitely suspended.”
Justin C. Jeffries, an associate director for the SEC in Atlanta, noted that the “over-generous” interest rates offered by First Liberty should have raised concerns among investors.
Founded by Frost in 2005, First Liberty raised at least $140 million between 2014 and June 2025. The SEC highlighted that the company advertised its services through various media, including radio and podcasts, especially in conservative circles.
The SEC's complaint further details that by 2021, First Liberty was operating at a deficit and was misusing new investments to repay existing investors. Additionally, Frost reportedly spent $230,000 on a vacation home rental in Kennebunkport, Maine, and used funds for luxury purchases, including a Patek Philippe watch and credit card payments amounting to $2.4 million.
Frost's political contributions, totaling over $570,000, were made to various conservative super PACs and Republican candidates, as recorded by the Federal Electoral Commission.
In his statement, Frost apologized for the harm caused and expressed his commitment to repaying investors while cooperating with federal authorities. He also mentioned his gratitude for the support from friends and family amidst the situation.
Frost, a resident of Newnan, Georgia, has a history of involvement in Republican politics, including managing the 1988 state campaign for Pat Robertson during his presidential bid. His family members are also noted to hold significant positions within the Republican party in Georgia.
The Department of Justice has not commented on the possibility of criminal charges related to this case.