Georgia Man Edwin Brant Frost Admits to $140M Ponzi Scheme in SEC Scandal

In a stunning financial scandal out of Georgia, the U.S. Securities and Exchange Commission has accused Edwin Brant Frost IV and his company, First Liberty Building & Loan, LLC, of running a massive Ponzi scheme that allegedly swindled $140 million from around 300 investors. The SEC claims that Frost lured investors with promises of juicy annual returns between 8% and 18% through loan participation agreements and promissory notes. But here’s the kicker: by 2021, a whopping 80% of the payments to investors reportedly came from new investor funds, not from any legitimate returns.

What did Frost do with all that cash? According to the SEC, he didn’t just sit on it. Allegations point to lavish spending, including over $570,000 in political donations, a $20,800 watch that probably doesn’t even tell the future, and more than $2.4 million in credit card payments for himself and his businesses. Talk about living large on someone else’s dime.

Frost, who has identified as a Republican, isn’t dodging the blame. In a statement provided through his lawyer, he admitted to misleading people and took full responsibility for his actions. He expressed a commitment to repaying as much as possible and is cooperating with federal authorities and a receiver to mitigate the damage. He also issued a heartfelt apology—though legal restrictions prevent him from reaching out directly to those he harmed.

SEC officials didn’t hold back in their warnings. Justin C. Jeffries, associate director of enforcement in Atlanta, called out the classic red flag of high-return promises, noting that this sad story of greed and deception is one they’ve seen play out far too often. Investors, beware: if it sounds too good to be true, it probably is.