A prominent Georgia Republican, Brant Frost IV, is accused of running a Ponzi scheme that defrauded 300 investors out of at least $140 million, according to a complaint filed by federal officials. His company, First Liberty Building and Loan, misled investors about its business, claiming to provide high-interest loans, while it instead used new investments to pay earlier ones.

Frost is alleged to have taken more than $19 million 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 H. W. Bush famously spent summers. First Liberty has stopped making loans and paying returns, with only $2.67 million in cash available as of May 30. Investigators indicated that 90% of the loans may have defaulted, and the company is under scrutiny for potential violations of securities laws.

Records with the Federal Election Commission and campaign finance records for Georgia list donations from Mr. Frost, First Liberty and First National Investments to a slew of conservative super PACs and Republican political candidates, including Republican candidates like Governor Brian Kemp, David Perdue, Saxby Chambliss and State Senator Colton Moore in Northwest Georgia.  Campaign finance records show that Senator Moore received $29,700 from First Liberty through the Georgia Republican Assembly’s political action committee. The SEC is seeking to retrieve funds linked to Frost, while the company claims to be cooperating with authorities. Criminal charges against Frost are still being considered by federal prosecutors.

Frost has been influential in state politics since 1988, with family members also active in the Republican Party.

Compiled Sources