General Discussion

CurtEastPoint

(19,589 posts) Fri Jul 11, 2025, 08:13 AM Jul 11

Prominent GOP family in GA swindle scam: SEC alleges $140 M Ponzi scheme.

Sorry, paywalled but a recap:

https://www.ajc.com/politics/2025/07/sec-accuses-gop-linked-georgia-lender-of-140m-ponzi-scheme

The complaint alleges that First Liberty founder Brant Frost IV misappropriated investor funds, making payments to himself and relatives of more than $5 million and used other funds for operations of several affiliated companies, which were also named as defendants in the suit. The SEC said Frost used investor money to make more than $2.4 million in credit card payments, another $335,000 to a rare coin dealer, $230,000 on family vacations at a rental home in Maine and $20,800 for a Patek Philippe watch.

Frost also allegedly used investor money to make more than $570,000 in political donations, the SEC alleges. Brant Frost IV and his children were deeply embedded in grassroots conservative politics in Georgia, with roles in the state party and also a far-right faction that has pushed to ban some Republicans candidates from the party’s ballot.

Promotional materials highlighted appearances on the “Hugh Hewitt Show” and advertisements on the “Erick Erickson Show.” The lender billed its leaders as “authentic followers of Christ” with a penchant for charitable giving to religious causes. Its slogan: “We say yes when the big banks say no.”

Brant Frost V, the founder’s son and a company principal, often promoted the firm on conservative programs as a way for everyday investors to grow the “patriot economy.” Though it had a name that evoked “It’s a Wonderful Life,” First Liberty was not a bank, did not take deposits and was not insured by the Federal Deposit Insurance Corp.

Head scammer, BF IV:

Dweeb son of head scammer, BF V. Such original names. Such horrible genes!

7 replies

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Highlight:

Prominent GOP family in GA swindle scam: SEC alleges $140 M Ponzi scheme. (Original Post) CurtEastPoint Jul 11 OP

What a relief! Bernie Madoff lives!! bucolic_frolic Jul 11 #1

And I'm amazed and encouraged that the SEC is still operational! /nt bucolic_frolic Jul 11 #2

The first clue was Liberty in the company's name. tanyev Jul 11 #3

I KNOW. As church lady says, 'We reeeeeally like ourselves, don't we?' And that young dweeb found a woman... CurtEastPoint Jul 11 #6

Someone is bucking for a cabinet position superpatriotman Jul 11 #4

They look the part malaise Jul 11 #5

Frost says he's really, really sorry and pledges the rest of his life to make amends. 🙄 Eugene Jul 12 #7

bucolic_frolic

(51,616 posts)

1. What a relief! Bernie Madoff lives!!

Reply to CurtEastPoint (Original post)

Fri Jul 11, 2025, 08:25 AM

Jul 11

That's the kind of stuff that worries me about financial elites. There was a case in Boston, a financial planner absconding with the loot.

At least a big mutual fund company, or those of long duration, have reputation to rely on. Publicly traded they have the SEC looking over their shoulders. They all try to create an aura of invincibility, legacy wealth, heritage, financial ballast in bad times. They're all just holding companies, on paper, your money, stocks and advisors. Rigorous oversight keeps 'em honest. Amazed they caught these clowns. They ticked off all the boxes of good, clean, Christian, conservative living.

https://www.sec.gov/newsroom/press-releases/2025-98-sec-charges-georgia-based-first-liberty-building-loan-its-owner-operating-140-million-ponzi-schemeThat's the kind of stuff that worries me about financial elites. There was that

"According to the SEC’s complaint, from approximately 2014 through June 2025, First Liberty and Frost offered and sold to retail investors promissory notes and loan participation agreements that offered returns of up to 18% by representing that investor funds would be used to make short-term bridge loans to businesses at relatively high interest rates. The defendants allegedly told investors that very few of these loans had defaulted and that they would be repaid by borrowers via Small Business Administration or other commercial loans. The complaint also alleges that, while some investor funds were used to make bridge loans, those loans did not perform as represented, and most loans ultimately defaulted and ceased making interest payments. Since at least 2021, First Liberty operated as a Ponzi scheme by using new investor funds to make principal and interest payments to existing investors, according to the complaint. The complaint further alleges that Frost misappropriated investor funds for personal use, including by using investor funds to make over $2.4 million in credit card payments, paying more than $335,000 to a rare coin dealer, and spending $230,000 on family vacations."

bucolic_frolic

(51,616 posts)

2. And I'm amazed and encouraged that the SEC is still operational! /nt

Reply to bucolic_frolic (Reply #1)

Fri Jul 11, 2025, 08:26 AM

Jul 11

tanyev

(47,266 posts)

3. The first clue was Liberty in the company's name.

Reply to CurtEastPoint (Original post)

Fri Jul 11, 2025, 08:52 AM

Jul 11

The second clue was a family that’s still passing down the patriarch’s name in the fifth generation. Full of themselves much?

CurtEastPoint

(19,589 posts)

6. I KNOW. As church lady says, 'We reeeeeally like ourselves, don't we?' And that young dweeb found a woman...

Reply to tanyev (Reply #3)

Fri Jul 11, 2025, 11:39 AM

Jul 11

stupid enough to marry him. What is he? 12? I wish gondolier lady woulda dumped them in the GD canal.

superpatriotman

(6,726 posts)

4. Someone is bucking for a cabinet position

Reply to CurtEastPoint (Original post)

Fri Jul 11, 2025, 08:57 AM

Jul 11

Say hello to the next SEC Review Board

malaise

(287,129 posts)

5. They look the part

Reply to CurtEastPoint (Original post)

Fri Jul 11, 2025, 09:02 AM

Jul 11

“authentic followers of Christ” 😂😂😂

Eugene

(65,961 posts)

7. Frost says he's really, really sorry and pledges the rest of his life to make amends. 🙄

Reply to CurtEastPoint (Original post)

Sat Jul 12, 2025, 02:10 AM

Jul 12

I could have done so faster if the gubmint didn't freeze my assets.

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.”

https://apnews.com/article/brant-frost-iv-ponzi-scheme-first-liberty-80922ed266e203bd77ed1a5c4244d482

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