Newnan Businessman Sentenced for over $76 Million Ponzi Scheme

NEWNAN, Ga. - Edwin Brant Frost IV has been sentenced to 15 years in federal prison for operating a massive Ponzi scheme that victimized more than 300 investors and caused a loss of over $76 million.

"Like a false prophet and ravenous wolf in sheep's clothing, Frost used religion, politics, and promises of profitable returns to lure investors into giving him their hard-earned money. He wickedly exploited their faith to plunder their accounts and enrich himself," said U.S. Attorney Theodore S. Hertzberg. "This was a stunning, sinful, and sacrilegious abuse of trust that wrecked hundreds of investors, including retirees and seniors who lost their life savings."

"Edwin Frost orchestrated a $76 million Ponzi scheme that devastated hundreds of investors who trusted him with their hard-earned money and financial futures. He exploited that trust to enrich himself, diverting millions for personal luxuries and political contributions while concealing the truth about his failing business," said Marlo Graham, Special Agent in Charge of FBI Atlanta. "Today's sentence holds Frost accountable for this massive fraud and reflects the FBI's commitment to investigating complex financial crimes and pursuing justice for victims."

"Mr. Frost orchestrated a multi-million dollar Ponzi scheme that defrauded hundreds of investors and used the proceeds from the fraud on lavish purchases for himself. Today's sentencing brings him to justice for his crimes," 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 will continue to work with our law enforcement partners to investigate and hold accountable fraudsters who deceive innocent victims out of their hard-earned savings."

According to U.S. Attorney Hertzberg, the charges, and other information presented in court: between at least 2021 through July 2025, Frost orchestrated a large-scale investment fraud through his Newnan, Georgia-based company, First Liberty Building and Loan, LLC, ultimately causing over $76 million in losses to over 300 victims.

Frost held out First Liberty as a politically conservative, Christian lender committed to helping small businesses. Frost told investors that their funds would be used to make short-term, high-interest "bridge loans" to small businesses, and he promised returns between 8 and 18 percent, paid monthly. He assured investors that their principal and interest would be repaid through borrowers' eventual refinancing-often through loans backed by the Small Business Administration (SBA)-and he claimed First Liberty would earn revenue solely from transaction fees and interest-rate spreads.

By 2021, however, First Liberty was not generating enough revenue to meet its obligations. Numerous bridge loans had defaulted, borrowers had stopped making payments, and the company no longer had sufficient legitimate business income to pay interest to investors. Instead of disclosing these shortfalls, Frost reassured investors of the company's success, falsely claiming that First Liberty was using 100 percent of their money to fund bridge loans, that the loans were performing, and that only a few had defaulted. Frost also represented that borrowers had already received SBA preapproval, when few, if any, had. While lying to investors about his failing business, Frost, unbeknownst to the investors, began using new investor funds to pay interest owed to existing investors.

Frost diverted at least $5 million of investor funds for his own personal benefit. Frost spent investor funds on extravagant personal items, including:

• a $230,000 vacation home rental in Maine;
• more than $140,000 in jewelry purchases;
• a $20,800 Patek Philippe watch;
• over $335,000 paid to a rare coin dealer;
• more than $2 million in credit card payments; and
• more than $570,000 in political contributions.

Frost also funneled investor money to entities related to himself or First Liberty.

Today, Chief U.S. District Judge Leigh Martin May sentenced Edwin Brant Frost IV, 69, of Newnan, Georgia, to 15 years in prison to be followed by three years of supervised release, and ordered him to pay restitution in the amount of $76,454,374.39. Frost was convicted of wire fraud on May 12, 2026, after he pleaded guilty.

This case was investigated by the Federal Bureau of Investigation and U.S. 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 United States Attorney Angela Adams prosecuted the case.

For further information please contact the U.S. Attorney's Public Affairs Office at [email protected] or (404) 581-6185. The Internet address for the U.S. Attorney's Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.