First Liberty president charged with multi-million-dollar Ponzi scheme

ATLANTA - Edwin Brant Frost IV, former president of the now-defunct, Newnan, Georgia-based First Liberty Building & Loan LLC ("First Liberty"), was arraigned today on a federal charge of wire fraud for orchestrating a massive, multi-million-dollar Ponzi scheme.

"Frost abused the trust of his clients, family, and friends by allegedly soliciting investors with promises of sizable returns, while knowing the money raised would instead be used for his personal expenses and to pay early investors to maintain the illusion of profits," said U.S. Attorney Theodore S. Hertzberg. "With assistance from our law enforcement partners, we will pursue, prosecute, and punish greedy schemers who defraud victims out of their hard-earned savings and retirement accounts."

"Frost allegedly operated a classic Ponzi scheme-using new investor funds to pay earlier investors while concealing significant financial losses," said Marlo Graham, Special Agent in Charge of FBI Atlanta. "Schemes like this exploit trust and can devastate victims' savings and retirement security. The FBI remains committed to holding accountable those who engage in financial fraud and to protecting the investing public."

"The defendant in this case was charged today for allegedly orchestrating a multi-million-dollar Ponzi scheme that defrauded hundreds of investors," said Special Agent in Charge Kyle A. Myles of the Federal Deposit Insurance Corporation Office of Inspector General (FDIC OIG), Atlanta Region. "The FDIC OIG remains committed to working with our law enforcement partners to investigate allegations of fraud and other financial crimes, as we seek to protect consumers and preserve the integrity of our Nation's banking sector."

According to U.S. Attorney Hertzberg, the charges, and other information presented in court: From at least 2021 until in or about July 2025, Frost solicited individuals to invest in what was marketed as short-term small business loans ("Bridge Loans") that would be provided to businesses in need of immediate funding. Frost told investors that their money would be used solely to fund these Bridge Loans. He also promised investors that they would receive rates of return between 8 and 18 percent and that their monthly interest payments would be funded by the repayment of the Bridge Loans. Frost represented that First Liberty would, in turn, be compensated either from loan fees borrowers would pay to obtain the Bridge Loans or through the difference between the interest borrowers paid to First Liberty and the interest First Liberty paid to the investors.

Contrary to these representations, the money First Liberty received from investors was not used solely to fund Bridge Loans. Instead, Frost used new investors' money to pay returns to previous investors and to fund more than $5 million of personal and sometimes extravagant expenditures, including:

• Over $230,000 to rent a vacation home in Maine
• Over $140,000 to purchase jewelry
• $20,800 for a Patek Philippe watch
• Over $2 million on credit card bills and
• Over $570,000 on political contributions

Frost failed to disclose to investors that several loan borrowers had defaulted on the repayment of their loans, and that, despite having defaulted, Frost had continued to provide Bridge Loan financing to at least one of the defaulted companies. During the scheme, Frost raised at least $140 million from at least 300 investors.

Edwin Brant Frost IV, 68, of Newnan, Georgia, was arraigned today before Chief U.S. Magistrate Judge Justin S. Anand. He was released on bail pending further proceedings.

Members of the public are reminded that the information only contains charges. The defendant is presumed innocent of the charges until he is proven guilty or admits guilt in a court of law.

This case is being investigated by the Federal Bureau of Investigation and the Federal Deposit Insurance Corporation-Office of Inspector General with substantial assistance from the Securities and Exchange Commission and the Office of the Georgia Secretary of State.

Assistant U.S. Attorney Angela Adams is prosecuting the case.

For further information please contact the U.S. Attorney's Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney's Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga