News Summary
The Georgia Secretary of State’s office is deepening its investigation into First Liberty Building & Loan, which faces allegations of operating a $140 million Ponzi scheme. New subpoenas have been issued to several individuals linked to the firm, including its founder, Brant Frost IV. The firm’s collapse has raised concerns about the misappropriation of investor funds, with accusations surfacing that Frost IV diverted millions for personal use. This troubling case brings to light the intersection of financial misconduct and political influence within Georgia.
Atlanta, Georgia – The Georgia Secretary of State’s office has expanded its investigation into First Liberty Building & Loan, a financial firm accused of orchestrating a massive Ponzi scheme that defrauded investors of approximately $140 million. Recent developments include the issuance of new subpoenas targeting several key individuals involved with the firm.
Brant Frost IV, the founder of First Liberty, is at the center of the scheme and has publicly expressed remorse over his actions. The subpoenas have been served to Randy Hough, a former senior development officer and current vice chair of the Fayette County Board of Education; Jayme Sickert, a compliance officer; and Nathaniel Darnell, a financial adviser and notable figure in the Georgia Republican Assembly. The documents sought in the investigation pertain to the company’s lending practices.
The investigation was initiated shortly after First Liberty collapsed in June, leaving many investors shocked and concerned. It has since drawn significant attention in Georgia, particularly given the political connections of those involved. Sickert confirmed receipt of his subpoena but refrained from making any further comments about the investigation. Efforts to reach Hough for comments were unsuccessful, as were attempts to contact Darnell.
The allegations against Frost IV have also caught the attention of the U.S. Securities and Exchange Commission (SEC), which has accused him of misusing investors’ funds. It is alleged that Frost IV diverted more than $19 million for personal expenses, with expenditures including $573,000 in political donations, $160,000 spent on jewelry, and $335,000 used for purchases with a rare coin dealer. Following these accusations, the SEC has filed a lawsuit against him, and a federal judge has ordered the freezing of his assets.
In a bid to aid investors in recovering their losses, Frost IV has urged them to cooperate with a court-appointed receiver. The fallout from the bankruptcy of First Liberty may have broader implications, particularly concerning financing for far-right political initiatives in Georgia—an area where the Frost family has long held influence.
Earlier in the year, the Secretary of State’s office also issued a subpoena to Brant Frost V, the son of the founder, who was attempting to establish a new lending firm before the collapse of First Liberty. Additionally, the Georgia Republican Assembly, linked to both Darnell and Frost V, is currently facing scrutiny for 61 alleged violations from the state ethics commission relating to unreported expenditures totaling $220,000.
Brant Frost IV has been a prominent figure in Georgia politics since 1988, playing a significant role in coordinating political efforts for various conservative leaders. The Frost family maintains an extensive network within the political landscape, with Brant Frost V serving as chairperson of the Coweta County GOP and his daughter, Katie Frost, holding a position within the Republican Party at the congressional district level.
The ongoing investigation into First Liberty Building & Loan raises critical questions about accountability and transparency in both financial practices and political funding, as authorities continue to scrutinize the links between the firm and the Frost family’s political activities. The outcome of this investigation is likely to have lasting repercussions for the individuals involved, as well as for Georgia’s political framework moving forward.
Deeper Dive: News & Info About This Topic
- AJC: State Widens Probe into Failed Georgia Lender Accused of $140M Ponzi Scheme
- Wikipedia: Ponzi Scheme
- New York Times: Brant Frost and the First Liberty Ponzi Scheme
- Google Search: Brant Frost First Liberty Ponzi Scheme
- The Guardian: Georgia Republican Ponzi Scheme
- Google News: Georgia Ponzi Scheme
- AP News: Brant Frost IV Ponzi Scheme Updates
- Encyclopedia Britannica: Ponzi Scheme
Author: STAFF HERE AUGUSTA WRITER
AUGUSTA STAFF WRITER The AUGUSTA STAFF WRITER represents the experienced team at HEREAugusta.com, your go-to source for actionable local news and information in Augusta, Richmond County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as Arts in the Heart Festival, Westobou Festival, and Masters Week. Our coverage extends to key organizations like the Augusta Metro Chamber of Commerce and Greater Augusta Arts Council, plus leading businesses in manufacturing and healthcare that power the local economy such as Textron Specialized Vehicles, Cardinal Health, and Nutrien. As part of the broader HERE network, including HEREAtlanta.com and HERESavannah.com, we provide comprehensive, credible insights into Georgia's dynamic landscape.
