Brant Frost IV, a well-known Georgia Republican figure, issued a public apology after being accused of running a $140 million Ponzi scheme. In a statement released through his attorneys, Frost expressed regret over his actions and acknowledged the harm caused.
While under legal constraints that limit direct communication with victims, Frost accepted full responsibility and pledged to cooperate with authorities and the court-appointed receiver. He committed to doing everything possible to repay investors and assist with recovery efforts.
SEC Alleges Ponzi Scheme as Frost Diverts Millions for Luxury and Political Spending
The U.S. Securities and Exchange Commission (SEC) filed a civil lawsuit against Frost and his company, First Liberty Building and Loan, alleging they misled investors. The business claimed to offer high-interest loans to companies, but most of the loans failed.
Instead of admitting the losses, Frost raised additional funds to pay earlier investors—a classic hallmark of a Ponzi scheme. The SEC said Frost and his family siphoned millions from the scheme, using investor funds for personal luxuries and political donations.
Brant Frost IV Apologizes After $140M Ponzi Scheme Exposed, SEC Alleges Lavish Spending and Political DonationsThe scandal sent shockwaves through the religious and political communities that had backed First Liberty, particularly in suburban Newnan, southwest of Atlanta. The fallout may interrupt financial support for far-right Republican candidates who had previously relied on Frost and his family.
Court documents revealed that Frost spent more than half a million dollars of investor funds on political contributions, potentially shifting the dynamics of state-level Republican politics in Georgia.
Judge Freezes Assets as Frost Faces Allegations of Fraud and Lavish Spending Spree
In response to the SEC’s findings, U.S. District Judge Michael Brown ordered a freeze on Frost’s personal and business assets and banned him from the securities industry. He also appointed financial consultant S. Gregory Hays as the receiver to oversee asset recovery and manage investor claims.
At the time of the court filing, First Liberty had only $2.67 million in cash, leaving 300 investors collectively short by $140 million—an average loss of nearly $500,000 each.
Frost allegedly diverted $17 million for personal use, including $573,000 in political donations, $160,000 on jewelry, a luxury watch, gold coins, and extended stays in Kennebunkport, Maine. Despite facing scrutiny, Frost continued soliciting investments, falsely claiming the company was developing AI software to assist banks with loan processing.
First Liberty ultimately shut down on June 27, just 11 days after that claim. While the SEC pursues its civil case, federal prosecutors and the Georgia secretary of state continue to investigate potential criminal and securities law violations.
