The U.S. Securities and Exchange Commission (SEC) has filed civil charges against Newnan, Georgia’s First Liberty Building & Loan, LLC and its owner, Edwin Brant Frost IV, accusing them of running a $140 million Ponzi scheme that defrauded approximately 300 retail investors over more than a decade.

From around 2014 through June 2025, the company sold high-interest promissory notes and loan participation agreements, promising returns of 8–18% from short-term bridge loans to small businesses. The SEC alleges that "while some loans were issued, most defaulted," and beginning in 2021, new investor funds were systematically diverted to pay both principal and interest to earlier investors—a classic hallmark of a Ponzi operation.

🔍 Misuse of Funds & Personal Enrichment

• $19.4 M+ allegedly taken by Frost for personal expenses, including:

  • $2.4 M in credit card payments

  • $335,000 for rare coins

  • $230,000 for family vacations

  • $570,000 on political donations

• As of May 30, the business held only $2.67 M in cash, meaning investors collectively suffered average losses of roughly $466,000 each.

  
  

⚖️ SEC Seeks Emergency Relief

In response, the SEC has requested and received:

• A freeze on all assets of First Liberty and Frost

• Appointment of S. Gregory Hays as receiver to manage operations and recover funds

• Permanent injunctions, civil penalties, and disgorgement of ill-gotten gains.

  
  

Frost and related entities have…