The former president of failed U.S. lender, First Liberty Building & Loan LLC, is being charged with fraud amid allegations that the firm was operated as a Ponzi scheme.
First Liberty’s former president, Edwin Brant Frost IV, was charged with wire fraud for allegedly orchestrating a massive Ponzi scheme that raised over US$140 million from investors.
According to U.S. authorities, between 2021 and July 2025, when the Georgia-based lender collapsed, Frost solicited investors to finance short-term small business loans for companies with immediate funding needs, allegedly promising returns of between 8% and 18%.
However, it’s alleged that investors’ money wasn’t only used to finance loans, as promised. Instead, more than US$5 million was allegedly diverted for personal spending, and money from new investors was used to pay returns to earlier investors.
Additionally, authorities alleged that Frost failed to disclose to investors that several borrowers had defaulted on their loans, and that he continued to provide financing to at least one of those companies.
Last July, the U.S. Securities and Exchange Commission (SEC) charged Frost and First Liberty for allegedly violating securities laws.
At the time, a court appointed a receiver for the firm, and imposed an asset freeze. Without admitting or denying the regulator’s allegations, the defendants in that proceeding consented to the SEC’s requested emergency relief.
In its action, the SEC is seeking permanent injunctions and civil penalties, along with a conduct-based injunction against Frost, and disgorgement of ill-gotten gains with interest.
None of the allegations have been proven, and Frost is presumed to be innocent of the criminal charge against him. After being arraigned on Thursday in Georgia, Frost was released on bail.