Newnan, ga. (AP) – The famous Georgian Republican was conducting a Ponzi scheme that deceived at least $ 140 million 300 investors, a complaint on Thursday states that 300 investors.
A civil claim in the US Securities and Exchange Commission stated that the First Liberty Building and Loan, which is controlled by Brant Frost IV, lied to investors about its business-to-business loans. Investigators said it raised more money to return previous investors.
It is claimed that Frost has taken over $ 19 million investors’ funds for themselves, their family and related companies, even when the business has stopped, spent $ 160,000 on jewelry jewelry and $ 335,000 with a rare coin seller. It is also said that the Frost has spent $ 320,000 to rent a leased holiday home over the years in Kennebunkport, Main, a city where the family of the late President George Hw Bush spent the summer loudly.
SEC said the cold was constantly writing checks even after
First Liberty said last month that it would stop loan to provide loans and pay interest and basic investors for those loans. The company said it did not respond to phone calls or email. Letters.
First Liberty did not respond to email. A letter asking for comment and no one in his office was on Thursday night in a suburb of Southwest of the Atlantic. A lawyer who acts as a company registered as an agent for the company’s goals earlier stated that he had no information.
The collapse shocked religious and political networks from which the business attracted investors. It can also have consequences in state Republican politics, reducing funding for extreme right candidates, which the Frost and his family preferred. Investigators said Frost spent $ 570,000 from investors’ funds for political contributions.
SEC said that as of May 30 Business had only $ 2.67 million. USD cash, although regulatory authorities also seek to recover money from Frost and related companies. When 300 investors spent $ 140 million, it means that the average investor has earned nearly $ 500,000.
First Liberty told companies that needed cash to wait for more regular loans from the US small business administration. Based on the document received by Associated Press, he paid high interest rates – 18% for some loans. First Liberty has promised investors equally high in return – 16% for 18% loans.
In recent months, business has been promoting a lot on conservative radio shows promising “Volstryt’s return on the main street investors”.
“The promise of a high return rate of investment is a red flag that should force all potential investors to think twice, or even three times before investing in their money,” Justin C. Jeffries said in a statement, the Director of execution of the SEC Atlantic Regional Bureau.
The company represented that it “cooperates with the federal authorities as part of an effort to make a business awakening.” The SEC said the Frost and its companies agreed on the actions of the SEC “with the money that the court is subsequently established”.
Although the SEC says there were loans for companies, as many as 90% of those companies undertook. By 2021 The company acted as a Ponzi scheme, said in a complaint, even when the Frost took off the increasing sums of money.
Business is being investigated by the Georgian Secretary of State for possible violations of securities laws, said Bureau spokesman Robert Sinners.
AP was received in 2023. The document was named as a “bill”, and sinners said that anyone who issues bills of exchange should be registered with Georgian securities officers.
Sinners encouraged any victims to contact the state securities section.
Federal prosecutors refused to comment on whether they were considering a criminal charges. Occasionally, investment fraud is subject to both the SEC civil case and the federal criminal case.
Frost has been an important player of Georgia politics since 1988, when he coordinated the proposal of the television of the Robertson Republican President in the state. His son Brant Frost V is the chairman of the Coweta County Republican Party where the company is located, and is a former deputy chairman of the State Republican Party. Daughter Katie Frost is the President of the 3rd Congress area, which is located in Coweta County and other territories southwest of the Atlantic.
At the last month’s Republican Congress, Katie Frost chaired a candidacy committee recommended by delegates to overload Josh McKoon, chairman of the State Party. The delegates followed this recommendation, rejecting many rebel candidates.