Latest news with #BrantFrostIV


New York Post
a day ago
- Business
- New York Post
Prominent Georgia Republican Brant Frost IV apologizes for $140M Ponzi scheme as judge freezes assets
A prominent Georgia Republican accused of running a $140 million Ponzi scheme publicly apologized on Friday as a federal judge ordered his assets frozen and appointed a receiver to try to recover cash for investors. Brant Frost IV said in a statement issued through his lawyers that he 'would like to apologize personally to those I have harmed, but I am under restrictions which prevent me from doing so.' '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,' Frost said in the statement. '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.' 3 Georgia Republican Brant Frost IV, accused of running a $140 million Ponzi scheme, publicly apologized as his assets were frozen. First Liberty Building & Loan / YouTube The U.S. Securities and Exchange Commission said in a civil lawsuit filed Thursday that First Liberty Building and Loan, controlled by Frost, lied to investors about its business of making high-interest loans to companies. Instead, investigators said that its loans mostly went sour and that it then raised more money to repay earlier investors, while Frost skimmed millions for himself and his family. The firm's collapse rocked the religious and political networks that fed cash to the business, based in suburban Newnan, southwest of Atlanta. It also could have ramifications in state Republican politics, cutting off funding to the far-right candidates that Frost and his family have favored. Investigators said Frost spent $570,000 from investor funds on political contributions. U.S. District Judge Michael Brown on Friday froze Frost's personal and corporate assets, banned him from the securities business, and ordered him to pay back ill-gotten gains with interest and fines. The SEC requested the order and Frost agreed to it without admitting or denying any factual allegations. 3 The U.S. Securities and Exchange Commission said that First Liberty Building and Loan, controlled by Frost, lied to investors. AP The judge also appointed financial consultant S. Gregory Hays as receiver. He will take control of assets, examine the books and try to claw back money. Everyone else is barred, for now, from suing Frost or First Liberty. The SEC said the business had only $2.67 million in cash as of May 30. With 300 investors out $140 million, that means the average investor put in nearly $500,000. Frost is alleged to have taken $17 million for himself, his family and affiliated companies, spending $573,000 on political donations to Republicans, $160,000 on jewelry, $20,800 on a Patek Philippe watch and $335,000 to buy gold coins. Frost is also accused of spending $320,000 to rent a vacation home over multiple years in Kennebunkport, Maine, the town where the family of late president George H. W. Bush spent summers. 3 Frost is alleged to have taken $17 million for himself, his family and affiliated companies, spending $573,000 on donations to Republicans, $160,000 on jewelry, $20,800 on a Patek Philippe watch and $335,000 to buy gold coins. Brant Frost / LinkedIn The SEC said in court papers that Frost kept writing checks and soliciting new investors even after he made 'misrepresentations' when investigators first met with Frost on May 15. Court papers included a June 16 email asking investors to put between $100,000 and $500,000 into a loan to First Liberty itself, claiming the company was developing an AI software system to help banks and credit unions complete loan applications quickly. The company went out of business 11 days later on June 27. Federal prosecutors have declined to say whether they will seek criminal charges. Sometimes, both an SEC civil case and a federal criminal case are filed over investment frauds. The business is also being investigated by the Georgia secretary of state for possible violations of securities law. First Liberty said it made loans to companies that needed cash while they waited for more conventional loans from the U.S. Small Business Administration. It charged high rates of interest — 18% on most loans, prosecutors said. First Liberty promised investors equally high rates of return — 8% to 16%. The company advertised heavily to find new investors over the past year, branching out from the original 'family and friends' approach. Frost has been an important player in Georgia politics since 1988, when he coordinated televangelist Pat Robertson's Republican presidential bid in the state. His son, Brant Frost V, is chairman of the Coweta County Republican Party and former second vice-chair of the state Republican Party. Daughter Katie Frost is the Republican chairman of the 3rd Congressional District, which includes Coweta County and other areas southwest of Atlanta.
Yahoo
2 days ago
- Business
- Yahoo
Georgia Republican apologizes for $140M Ponzi scheme as judge freezes assets
ATLANTA (AP) — A prominent Georgia Republican accused of running a $140 million Ponzi scheme publicly apologized on Friday as a federal judge ordered his assets frozen and appointed a receiver to try to recover cash for investors. Brant Frost IV said in a statement issued through his lawyers that he 'would like to apologize personally to those I have harmed, but I am under restrictions which prevent me from doing so.' '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," Frost said in the statement. '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.' The U.S. Securities and Exchange Commission said in a civil lawsuit filed Thursday that First Liberty Building and Loan, controlled by Frost, lied to investors about its business of making high-interest loans to companies. Instead, investigators said that its loans mostly went sour and that it then raised more money to repay earlier investors, while Frost skimmed millions for himself and his family. The firm's collapse rocked the religious and political networks that fed cash to the business, based in suburban Newnan, southwest of Atlanta. It also could have ramifications in state Republican politics, cutting off funding to the far-right candidates that Frost and his family have favored. Investigators said Frost spent $570,000 from investor funds on political contributions. U.S. District Judge Michael Brown on Friday froze Frost's personal and corporate assets, banned him from the securities business, and ordered him to pay back ill-gotten gains with interest and fines. The SEC requested the order and Frost agreed to it without admitting or denying any factual allegations. The judge also appointed financial consultant S. Gregory Hays as receiver. He will take control of assets, examine the books and try to claw back money. Everyone else is barred, for now, from suing Frost or First Liberty. The SEC said the business had only $2.67 million in cash as of May 30. With 300 investors out $140 million, that means the average investor put in nearly $500,000. Frost is alleged to have taken $17 million for himself, his family and affiliated companies, spending $573,000 on political donations to Republicans, $160,000 on jewelry, $20,800 on a Patek Philippe watch and $335,000 to buy gold coins. Frost is also accused of spending $320,000 to rent a vacation home over multiple years in Kennebunkport, Maine, the town where the family of late president George H. W. Bush spent summers. The SEC said in court papers that Frost kept writing checks and soliciting new investors even after he made 'misrepresentations' when investigators first met with Frost on May 15. Court papers included a June 16 email asking investors to put between $100,000 and $500,000 into a loan to First Liberty itself, claiming the company was developing an AI software system to help banks and credit unions complete loan applications quickly. The company went out of business 11 days later on June 27. Federal prosecutors have declined to say whether they will seek criminal charges. Sometimes, both an SEC civil case and a federal criminal case are filed over investment frauds. The business is also being investigated by the Georgia secretary of state for possible violations of securities law. First Liberty said it made loans to companies that needed cash while they waited for more conventional loans from the U.S. Small Business Administration. It charged high rates of interest — 18% on most loans, prosecutors said. First Liberty promised investors equally high rates of return — 8% to 16%. The company advertised heavily to find new investors over the past year, branching out from the original 'family and friends' approach. Frost has been an important player in Georgia politics since 1988, when he coordinated televangelist Pat Robertson's Republican presidential bid in the state. His son, Brant Frost V, is chairman of the Coweta County Republican Party and former second vice-chair of the state Republican Party. Daughter Katie Frost is the Republican chairman of the 3rd Congressional District, which includes Coweta County and other areas southwest of Atlanta.


The Guardian
2 days ago
- Business
- The Guardian
Georgia Republican's Ponzi scheme defrauded people of $140m, say officials
A prominent Georgia Republican was running a Ponzi scheme that defrauded 300 investors of at least $140m, federal officials alleged in a complaint filed on Thursday. The civil lawsuit by the US Securities and Exchange Commission (SEC) said First Liberty Building and Loan, controlled by Brant Frost IV, lied to investors about its business of making high-interest loans to companies. Instead, investigators said, it raised more money to repay earlier investors. Frost is alleged to have taken more than $19m of investor funds for himself, his family and affiliated companies even as the business was going broke, spending $160,000 on jewelry and $335,000 with a rare coin dealer. Frost is also said to have spent $320,000 to rent a vacation home over multiple years in Kennebunkport, Maine, the town where the family of late president George HW Bush spent summers. The SEC said Frost kept writing checks even after the commission began its investigation. First Liberty said in June that it would stop making loans and paying interest and principal to investors in those loans. The company said it was not answering phone calls or emails. First Liberty has not responded to an email seeking comment, and no one was present at its office on Thursday evening in Newnan, a suburb south-west of Atlanta. A lawyer who acts as the company's registered agent for corporate purposes said earlier that he had no information. The collapse rocked the religious and political networks that the business drew investors from. It also could have ramifications in state Republican politics, cutting off funding to the far-right candidates that Frost and his family have favored. Investigators said Frost spent $570,000 from investor funds on political contributions. The SEC said the business had only $2.67m in cash as of 30 May, although regulators are also seeking to claw back money from Frost and associated companies. With 300 investors out $140m, that means the average investor put in nearly $500,000. First Liberty said it made loans to companies that needed cash while they waited for more conventional loans from the US Small Business Administration (SBA). It charged high rates of interest – 18% on some loans, according to a document obtained by the Associated Press. First Liberty promised investors equally high rates of return – 16% on the 18% loans. In recent months, the business advertised heavily on conservative radio shows promising 'Wall Street returns for Main Street investors'. '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,' Justin C Jeffries, associate director of enforcement for the SEC's Atlanta regional office, said in a statement. The company has represented that it is 'cooperating with federal authorities as part of an effort to accomplish an orderly wind-up of the business'. The SEC said Frost and his companies agreed to the SEC's enforcement actions 'with monetary remedies to be determined by the court at a later date'. While the SEC says there were loans to companies, as many as 90% of those companies have defaulted. By 2021, the company was running as a Ponzi scheme, the complaint said, even as Frost withdrew increasing amounts of money. The business is being investigated by the Georgia secretary of state for possible violations of securities law, said Robert Sinners, a spokesperson for the office. A 2023 document obtained by the AP is titled as a 'promissory note', and Sinners said anyone issuing promissory notes is supposed to be registered with Georgia securities officials. Sinners encouraged any victims to contact the state securities division. Federal prosecutors have declined to comment on whether they are considering criminal charges. Sometimes both an SEC civil case and a federal criminal case are filed over investment frauds. Frost has been an important player in Georgia politics since 1988, when he coordinated televangelist Pat Robertson's Republican presidential bid in the state. His son, Brant Frost V, is chairperson of the Coweta county Republican party, where the company is based – and is a former second vice-chairperson of the state Republican party. Daughter Katie Frost is Republican chairperson of the third congressional district, which includes Coweta county and other areas south-west of Atlanta. At June's state Republican convention, Katie chaired a nominating committee that recommended delegates re-elect state party chairperson Josh McKoon. Delegates followed that recommendation, rejecting a number of insurgent candidates.


Hamilton Spectator
2 days ago
- Business
- Hamilton Spectator
Georgia Republican apologizes for $140M Ponzi scheme as judge freezes assets
ATLANTA (AP) — A prominent Georgia Republican accused of running a $140 million Ponzi scheme publicly apologized on Friday as a federal judge ordered his assets frozen and appointed a receiver to try to recover cash for investors. Brant Frost IV said in a statement issued through his lawyers that he 'would like to apologize personally to those I have harmed, but I am under restrictions which prevent me from doing so.' '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,' Frost said in the statement. '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.' The U.S. Securities and Exchange Commission said in a civil lawsuit filed Thursday that First Liberty Building and Loan, controlled by Frost, lied to investors about its business of making high-interest loans to companies. Instead, investigators said that its loans mostly went sour and that it then raised more money to repay earlier investors, while Frost skimmed millions for himself and his family. The firm's collapse rocked the religious and political networks that fed cash to the business, based in suburban Newnan, southwest of Atlanta. It also could have ramifications in state Republican politics, cutting off funding to the far-right candidates that Frost and his family have favored. Investigators said Frost spent $570,000 from investor funds on political contributions. U.S. District Judge Michael Brown on Friday froze Frost's personal and corporate assets, banned him from the securities business, and ordered him to pay back ill-gotten gains with interest and fines. The SEC requested the order and Frost agreed to it without admitting or denying any factual allegations. The judge also appointed financial consultant S. Gregory Hays as receiver. He will take control of assets, examine the books and try to claw back money. Everyone else is barred, for now, from suing Frost or First Liberty. The SEC said the business had only $2.67 million in cash as of May 30. With 300 investors out $140 million, that means the average investor put in nearly $500,000. Frost is alleged to have taken $17 million for himself, his family and affiliated companies, spending $573,000 on political donations to Republicans, $160,000 on jewelry, $20,800 on a Patek Philippe watch and $335,000 to buy gold coins. Frost is also accused of spending $320,000 to rent a vacation home over multiple years in Kennebunkport, Maine, the town where the family of late president George H. W. Bush spent summers. The SEC said in court papers that Frost kept writing checks and soliciting new investors even after he made 'misrepresentations' when investigators first met with Frost on May 15. Court papers included a June 16 email asking investors to put between $100,000 and $500,000 into a loan to First Liberty itself, claiming the company was developing an AI software system to help banks and credit unions complete loan applications quickly. The company went out of business 11 days later on June 27. Federal prosecutors have declined to say whether they will seek criminal charges. Sometimes, both an SEC civil case and a federal criminal case are filed over investment frauds. The business is also being investigated by the Georgia secretary of state for possible violations of securities law. First Liberty said it made loans to companies that needed cash while they waited for more conventional loans from the U.S. Small Business Administration. It charged high rates of interest — 18% on most loans, prosecutors said. First Liberty promised investors equally high rates of return — 8% to 16%. The company advertised heavily to find new investors over the past year, branching out from the original 'family and friends' approach. Frost has been an important player in Georgia politics since 1988, when he coordinated televangelist Pat Robertson's Republican presidential bid in the state. His son, Brant Frost V, is chairman of the Coweta County Republican Party and former second vice-chair of the state Republican Party. Daughter Katie Frost is the Republican chairman of the 3rd Congressional District, which includes Coweta County and other areas southwest of Atlanta. Error! Sorry, there was an error processing your request. There was a problem with the recaptcha. Please try again. You may unsubscribe at any time. By signing up, you agree to our terms of use and privacy policy . This site is protected by reCAPTCHA and the Google privacy policy and terms of service apply. Want more of the latest from us? Sign up for more at our newsletter page .


San Francisco Chronicle
2 days ago
- Business
- San Francisco Chronicle
Georgia Republican apologizes for $140M Ponzi scheme as judge freezes assets
ATLANTA (AP) — A prominent Georgia Republican accused of running a $140 million Ponzi scheme publicly apologized on Friday as a federal judge ordered his assets frozen and appointed a receiver to try to recover cash for investors. Brant Frost IV said in a statement issued through his lawyers that he 'would like to apologize personally to those I have harmed, but I am under restrictions which prevent me from doing so.' '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," Frost said in the statement. '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.' The U.S. Securities and Exchange Commission said in a civil lawsuit filed Thursday that First Liberty Building and Loan, controlled by Frost, lied to investors about its business of making high-interest loans to companies. Instead, investigators said that its loans mostly went sour and that it then raised more money to repay earlier investors, while Frost skimmed millions for himself and his family. The firm's collapse rocked the religious and political networks that fed cash to the business, based in suburban Newnan, southwest of Atlanta. It also could have ramifications in state Republican politics, cutting off funding to the far-right candidates that Frost and his family have favored. Investigators said Frost spent $570,000 from investor funds on political contributions. U.S. District Judge Michael Brown on Friday froze Frost's personal and corporate assets, banned him from the securities business, and ordered him to pay back ill-gotten gains with interest and fines. The SEC requested the order and Frost agreed to it without admitting or denying any factual allegations. The judge also appointed financial consultant S. Gregory Hays as receiver. He will take control of assets, examine the books and try to claw back money. Everyone else is barred, for now, from suing Frost or First Liberty. The SEC said the business had only $2.67 million in cash as of May 30. With 300 investors out $140 million, that means the average investor put in nearly $500,000. Frost is alleged to have taken $17 million for himself, his family and affiliated companies, spending $573,000 on political donations to Republicans, $160,000 on jewelry, $20,800 on a Patek Philippe watch and $335,000 to buy gold coins. Frost is also accused of spending $320,000 to rent a vacation home over multiple years in Kennebunkport, Maine, the town where the family of late president George H. W. Bush spent summers. The SEC said in court papers that Frost kept writing checks and soliciting new investors even after he made 'misrepresentations' when investigators first met with Frost on May 15. Court papers included a June 16 email asking investors to put between $100,000 and $500,000 into a loan to First Liberty itself, claiming the company was developing an AI software system to help banks and credit unions complete loan applications quickly. The company went out of business 11 days later on June 27. Federal prosecutors have declined to say whether they will seek criminal charges. Sometimes, both an SEC civil case and a federal criminal case are filed over investment frauds. The business is also being investigated by the Georgia secretary of state for possible violations of securities law. First Liberty said it made loans to companies that needed cash while they waited for more conventional loans from the U.S. Small Business Administration. It charged high rates of interest — 18% on most loans, prosecutors said. First Liberty promised investors equally high rates of return — 8% to 16%. The company advertised heavily to find new investors over the past year, branching out from the original 'family and friends' approach. Frost has been an important player in Georgia politics since 1988, when he coordinated televangelist Pat Robertson's Republican presidential bid in the state. His son, Brant Frost V, is chairman of the Coweta County Republican Party and former second vice-chair of the state Republican Party. Daughter Katie Frost is the Republican chairman of the 3rd Congressional District, which includes Coweta County and other areas southwest of Atlanta.