United States SEC Files Charges for Asset Freeze & Emergency Relief Against Newnan, First Liberty Building & Loan and Founder Edwin Brant Frost IV for $140 Million Ponzi Scheme Defrauding 300 Investors from 2014 to 2025 by Selling Retail Investors Notes & Loans with 18% Returns to Provide Short-Term Bridge Loans to Businesses at High Interest Rate, Misappropriated Funds for Personal Use Including $2.4 Million for Credit Card Payments, $335,000 to Rare Coin Dealer & $230,000 on Family Vacations
12th July | Hong Kong
The United States Securities & Exchange Commission (SEC) has filed charges for asset freeze & emergency relief against Newnan, First Liberty Building & Loan and founder Edwin Brant Frost IV for $140 million Ponzi scheme in defrauding around 300 investors from 2014 to 2025 by selling retail investors notes & loans with 18% returns to provide short-term bridge loans to businesses at high interest rate, and misappropriating funds for personal use including $2.4 million for credit card payments, $335,000 to rare coin dealer & $230,000 on family vacations. United States SEC (10/7/25): “The Securities and Exchange Commission today announced that it filed charges seeking an asset freeze and other emergency relief against Newnan, Georgia-based First Liberty Building & Loan, LLC and its founder and owner Edwin Brant Frost IV in connection with a Ponzi scheme that defrauded approximately 300 investors of at least $140 million. According to the SEC’s complaint, from approximately 2014 through June 2025, First Liberty and Frost offered and sold to retail investors promissory notes and loan participation agreements that offered returns of up to 18% by representing that investor funds would be used to make short-term bridge loans to businesses at relatively high interest rates. The defendants allegedly told investors that very few of these loans had defaulted and that they would be repaid by borrowers via Small Business Administration or other commercial loans. The complaint also alleges that, while some investor funds were used to make bridge loans, those loans did not perform as represented, and most loans ultimately defaulted and ceased making interest payments. Since at least 2021, First Liberty operated as a Ponzi scheme by using new investor funds to make principal and interest payments to existing investors, according to the complaint. The complaint further alleges that Frost misappropriated investor funds for personal use, including by using investor funds to make over $2.4 million in credit card payments, paying more than $335,000 to a rare coin dealer, and spending $230,000 on family vacations. The SEC’s complaint, filed in the U.S. District Court for the Northern District of Georgia, charges First Liberty and Frost with violating the antifraud provisions of the federal securities laws and names five entities that Frost controlled as relief defendants. The SEC seeks emergency relief, including an order freezing assets, appointing a receiver over the entities, and granting an accounting and expedited discovery. The SEC also seeks permanent injunctions and civil penalties against the defendants, a conduct-based injunction against Frost, and disgorgement of ill-gotten gains with prejudgment interest against the defendants and relief defendants. Without admitting or denying the allegations in the complaint, the defendants and relief defendants consented to the SEC’s requested emergency and permanent relief, with monetary remedies to be determined by the court at a later date.”
“ United States SEC Files Charges for Asset Freeze & Emergency Relief Against Newnan, First Liberty Building & Loan and Founder Edwin Brant Frost IV for $140 Million Ponzi Scheme Defrauding 300 Investors from 2014 to 2025 by Selling Retail Investors Notes & Loans with 18% Returns to Provide Short-Term Bridge Loans to Businesses at High Interest Rate, Misappropriated Funds for Personal Use Including $2.4 Million for Credit Card Payments, $335,000 to Rare Coin Dealer & $230,000 on Family Vacations “
United States SEC Files Charges for Asset Freeze & Emergency Relief Against Newnan, First Liberty Building & Loan and Founder Edwin Brant Frost IV for $140 Million Ponzi Scheme Defrauding 300 Investors from 2014 to 2025 by Selling Retail Investors Notes & Loans with 18% Returns to Provide Short-Term Bridge Loans to Businesses at High Interest Rate, Misappropriated Funds for Personal Use Including $2.4 Million for Credit Card Payments, $335,000 to Rare Coin Dealer & $230,000 on Family Vacations
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