Georgia uncovers $140M Ponzi scheme targeting 300 investors over a decade
A major financial fraud case has unfolded in Georgia, with authorities investigating a suspected $140 million Ponzi scheme. The probe centres on First Liberty and Loan, a company accused of defrauding around 300 investors over a decade. State officials have taken swift action, appointing an investigative agent to uncover the full extent of the deception.
Separately, Republican lawmakers have pushed forward a bill that would shift regulatory oversight away from the current secretary of state's office.
The scheme, allegedly orchestrated by Edwin Brant Frost IV, ran from 2014 until June 2025. As founder and owner of First Liberty Building & Loan, Frost is accused of misusing investor funds for personal luxuries. The company also funnelled hundreds of thousands of dollars into political donations, supporting conservative candidates across multiple states.
Investigators claim the firm promised unrealistically high returns while misrepresenting loan performance. Evidence suggests it operated as a Ponzi scheme from at least 2021, using new investments to pay earlier backers. The business collapsed on June 27, 2025, when operations halted and a court-appointed receiver took control of asset recovery.
Secretary of State Brad Raffensperger has assigned Jason Doss as the lead investigative agent. Doss holds broad powers, including the ability to subpoena witnesses, gather documents, and conduct hearings. His role is to trace the flow of money and determine how many retirement savings were jeopardised.
Meanwhile, six Republican state representativesāincluding the House majority leader and speaker pro temporeāhave sponsored House Bill 934. The legislation proposes transferring securities and commodities oversight from Raffensperger's office to the Georgia Department of Banking and Finance. Critics argue the timing raises questions, given the ongoing fraud investigation.
The case has left roughly 300 investors facing potential losses, with retirement funds at risk. A court-appointed receiver is now working to recover assets from the defunct company. The outcome of the investigationāand the fate of the proposed regulatory changesāwill shape how Georgia handles financial oversight in the future.
