Georgia man accused by SEC of perpetrating Ponzi scheme says he takes 'full responsibility' for his actions
The document asserts that Frost and his company "raised at least $140 million from approximately 300 investors through the sale of loan participation agreements and promissory notes that offered annual returns of 8% to 18%.
"As of 2021, approximately 80% of interest and principal payments to investors were sourced from new investor funds, and not from Bridge Loan interest payments or principal repayments," the SEC complaint claims.
The SEC alleged Frost spent investor funds in various ways, some of which included making more than $570,000 in political donations, buying a $20,800 watch and making "over $2.4 million in payments to credit cards issued to him and his business entities."
The Associated Press indicated that Frost is a Republican.
"The promise of a high rate of return on an investment is a red flag that should make all potential investors think twice or maybe even three times before investing their money," said Justin C. Jeffries, associate director of enforcement for the SEC's Atlanta regional office, according to a press release.
"Unfortunately, we've seen this movie before — bad actors luring investors with promises of seemingly over-generous returns — and it does not end well."
Lawyer Joshua Mayes of Robbins Alloy Belinfante Littlefield LLC is representing Frost in the matter, and he provided Fox News Digital with a statement from Frost, who admitted he had misled people.
"I take full responsibility for my actions and am resolved to spend the rest of my life trying to repay as much as I can to the many people I misled and let down. I will be cooperating with the receiver and federal authorities and ask that everyone allow the receiver time to sort things out and do his best to repair the damage I created," Frost noted in the statement.
"I would like to apologize personally to those I have harmed, but I am under restrictions which prevent me from doing so. While I do not deserve it, I am grateful for the support of friends and family as I confront this situation I created."
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As gold prices increased, each new high was met with new Managed Money buying (blue bars). However, the highs in 2024 were the last time Managed Money increased their gross long positions with each new high price in gold. Seeing the price rally and Managed Money restraining from aggressive buying has me wondering who has been doing all this new buying? Source: CME Group Exchange I checked the commercial traders and swap dealers, which had no buying, and then the non-reportables, and found the aggressive buyers. Unfortunately, non-reportable traders rarely have the staying power of the previously listed traders. Non-reportable does not mean they are only retail traders, but could be larger speculators trading contract sizes under the reportable level. The non-reportables have continued buying new highs in gold up to the recent all-time highs. I don't consider this a sell signal, but it does let me know that it might not take much to create a cascade in gold market prices, which could be like a vacuum as the smaller traders rush for the exits simultaneously. The non-reportables have done well pushing these prices higher, and the trend continues. I only wanted to point out this COT report issue as a yellow flag of caution. As I've been writing, the gold market has had a significant move, and some of the items I mentioned may cause a headwind to higher gold prices. While I firmly believe in trend following, I like to be aware of upcoming events that may impact the market I choose to trade. Gold has historically had significant moves higher from July to early September. Moore Research Center, Inc. (MRCI) has extensively researched the gold market. Resulting in finding this potential bullish opportunity. As a crucial reminder, while seasonal patterns can provide valuable insights, they should not be the basis for trading decisions. Traders must consider various technical and fundamental indicators, risk management strategies, and market conditions to make informed and balanced trading decisions. Source: MRCI MRCI searches for profitable seasonal patterns and patterns with the least drawdown during the seasonal period (yellow box). After all, who wants to sit through a significant drawdown on the way to a potential profit? Gold has followed its seasonal 15-year pattern (blue line) fairly well since the beginning of the year. March usually sees a correction of some sort, sideways or down. The gold market has been trading sideways since then. Is it now ready to embark on its seasonal July bottom rally? I've added the Relative Strength Index (RSI) to the seasonal chart. In uptrends, it's not unusual for markets to enter corrections and end when the RSI has retraced back to the 50% vicinity. The gold market has had three of these corrections, each seeing a bounce in price. Gold is beginning its July seasonal buying window, and the RSI has been hovering around the 50% level. Coincidence? MRCI research has found that December gold has closed higher on approximately August 23 than on July 24 for 12 of the past 15 years, an 80% occurrence. During this time, four years never had a daily closing drawdown. During hypothetical testing, gold averaged about 47 points, $4,700 per winning trade during this seasonal window. Source: MRCI In the past, futures traders could participate in these moves using the standard-size contract (GC) or the micro-size (GR) contract, and equity traders could use the exchange-traded fund (ETF) symbol (GLD). Additionally, investors could purchase physical gold in the spot market. While the GR contract is more affordable than the GC for many traders, there has still been significant demand for a smaller gold contract from the retail trading base. To answer this request, the CME Group launched a 1-ounce gold futures contract on January 13, 2025, aimed at the retail client. Specifications for the new gold contract are: Contract Size: 1 ounce Pricing: U.S. dollars and cents per ounce Tick size: $0.25 (note the GC and GR contracts are $0.10) Trading symbol: 1OZ Expiration months: Feb, Apr, Jun, Aug, Oct, & Dec Settlement method: Cash settled The features of the 1OZ contract allow traders to track the price of gold more accurately. The 1OZ futures are directly tied to the spot price, offering accurate market exposure. Gold market bulls have enjoyed a remarkable run, with prices soaring 117% from $1,618 in October 2022 to an all-time high of $3,509.9 by July 2025, per futures contract charts. Central bank purchases, with 1,045 metric tonnes added in 2024 per the World Gold Council, and geopolitical tensions, like U.S.-global trade disputes, continue to drive demand. However, a potential headwind looms: a new Federal Reserve Chair in 2026 could slash short-term rates, sparking inflation fears and raising long-end yields, which historically pressure gold. Speculators face short-term risks if yields spike, while hedgers might see less need for gold if dollar stability returns. The Commitment of Traders (COT) report raises caution, showing non-reportable traders, not Managed Money, driving recent highs, per CME Group data. These smaller players, upping bets through July 2025, lack the staying power of the more capitalized managed money traders, signaling a risk of sharp sell-offs if sentiment shifts. Seasonally, gold's July-to-early-September rally, with an 80% chance of closing higher by August 23 per Moore Research Center's 15-year data, supports bulls, especially with the Relative Strength Index near 50%, a level tied to past bounces. Yet, traders must weigh this against technical overextension, as gold trades far above its 50-week moving average. For those looking to trade, CME Group's new 1-ounce gold futures contract (1OZ), launched January 13, 2025, offers retail traders a cash-settled, affordable way to track spot prices, complementing standard (GC) and micro (GR) contracts. Speculators can capitalize on volatility, while hedgers gain precise exposure to protect against economic uncertainty. Despite risks, the trend remains bullish, but traders should monitor COT shifts and changes to the Fed Chair position to navigate potential corrections. On the date of publication, Don Dawson did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
