The Securities and Exchange Commission has accused Edwin Brant Frost IV and his private lending company First Liberty Building & Loan with allegedly presiding over a sophisticated $140 million Ponzi scheme, according to a civil complaint filed on Thursday in federal court in Atlanta.
Authorities claim Frost, 67, specifically targeted Republican activists and conservative Christian investors through a network of right-wing media outlets. The Georgia financial firm’s now-defunct website calls out its advertisements “as heard on” conservative media including Erick Erickson, Hugh Hewitt, and Charlie Kirk’s shows. First Liberty abruptly shut down late last month posting a note to clients on its website stating that its investments, payments, and programs were “indefinitely suspended.”
“First Liberty is cooperating with federal authorities as part of an effort to accomplish an orderly wind-up of the business,” the message states. “First Liberty employees are not authorized to make any further communications at this time regarding the ongoing situation, and no one at the company will be available to answer phone calls or respond to email inquiries.”
Attempts to reach Frost were unsuccessful.
According to the complaint, Frost and First Liberty raised at least $140 million from the sale of loan participation agreements and promissory notes to at least 300 investors. The alleged scheme began back in 2014 with Frost raising capital through friends and family. They were first offered loan participation agreements, which are contracts where investors pool money together to fund a single loan with each participant owning a percentage. They were later offered promissory notes—basically IOUs— in which investors were lending money to the company itself. Brant allegedly told investors the funds would be used to make short-term bridge loans at high interest rates.
Frost and First Liberty allegedly told investors 100% of the proceeds from loan agreements and promissory notes would be used to fund bridge loans and that investors would be reap gains from the repayment of the bridge loans and the interest paid on them. The friends and family program offered 14% to 18% returns, and the notes an annual return of 8% to 13%. The SEC claims Frost told investors orally he did not take fees out of the investor funds.
The SEC’s complaint alleges nearly all of these representations were false. In 2021, First Liberty began operating as a Ponzi scheme, the complaint states, with about 80% of the interest and payments to investors sourced from new investor funds—the hallmark of a Ponzi scheme.
“The promise of a high rate of return on an investment is a red flag that should make all potential investors think twice or maybe even three times before investing their money,” said Justin C. Jeffries, Associate Director of Enforcement for the SEC’s Atlanta Regional Office in a statement. “Unfortunately, we’ve seen this movie before—bad actors luring investors with promises of seemingly over-generous returns—and it does not end well.”
In 2024, the SEC claims Frost expanded the financial firm’s reach by offering and selling the promissory notes to the public on the radio, the firm’s website and on podcasts and other programs. The company marketed itself as a fundamental piece of what it called the “patriot economy.”
But, according to the SEC, the alleged scheme had already unraveled. First Liberty allegedly operated at a deficit each year from 2021 through May 30, 2025 and instead functioned as a Ponzi operation. The regulator claims Frost even allegedly misled current investors about the security of their existing investments to coax more funding out of them.
During the alleged scheme, the SEC accused Frost of living lavishly off investors’ assets.
Frost allegedly spent $230,000 to rent a vacation home in Kennebunkport, Maine and $140,000 on jewelry. He also allegedly snagged a $20,800 Patek Philippe watch with investor money and doled out $335,000 to a rare coin dealer. He also allegedly paid $2.4 million on his credit cards with investor funds and made $570,000 in political donations.
The SEC alleged that nine days after commission staffers interviewed Frost, he withdrew $100,000 from company accounts containing investor funds and wrote $210,875 in checks from company accounts to a business that specializes in selling gold coins. The SEC has frozen Frost’s assets.
Messages to Erickson, Hewitt, and Kirk were not immediately returned.
In a message on the website, First Liberty wrote: “First Liberty hopes to provide additional information and updates in the near future regarding the status of the company’s efforts to effectuate an orderly wind-up of the business.”
