Former Georgia Republican county chairman may face criminal charges for role in alleged Ponzi scheme
A former Georgia Republican Party chairman has been fined hundreds of thousands of dollars and could face criminal charges for his role in an alleged $140 million Ponzi scheme that touched the top ranks of GOP politics in Georgia.
Edwin Brant Frost V, the son of First Liberty Building and Loan founder Edwin Brant Frost IV and the former chairman of the Coweta County Republican Party, was fined by Secretary of State Brad Raffensperger $500,000 and barred from acting as an investment adviser in Georgia.
In the emergency order, which was signed on Tuesday, the Secretary of State's Office said it found that Frost V "provided false and misleading information" to multiple investors, including a close family friend.
"This is just the first of many orders we expect to file soon," Raffensperger said in a statement. "This imposes the maximum $500,000 fine."
Noula Zaharis, the assistant commissioner of securities, referred the case to the Coweta County district attorney for prosecution. Zaharis also sent the investigation to the Office of the Commissioner of Insurance and Safety Fire, under which Frost V is licensed.
Attorney Chris Huber, who is representing Frost V, said his client denies the allegations in the secretary of state's investigation.
"The Secretary of State did not provide him an opportunity to address the baseless accusations before rushing to judgment and to the press," Huber said in a statement. "We will continue to defend Mr. Frost."
CBS News Atlanta has reached out to the Coweta County District Attorney's Office for comment and will update this story if they reply.
Alleged Ponzi scheme targeted grassroots Republicans, officials say
Federal investigators said First Liberty defrauded at least 300 investors of at least $140 million before going bust in 2025.
The company had promised returns up to 16% by making high-interest loans to businesses. Frost IV, an evangelical powerbroker, touted "Wall Street returns for Main Street investors." But he skimmed $17 million for himself, his relatives, and their affiliated companies, and loaned millions more that borrowers never repaid, a U.S. Securities and Exchange Commission lawsuit claims.
Among those who lost money were a company run by former Georgia GOP Chairman David Shafer, Alabama state Auditor Andrew Sorrell, and a political action committee controlled by the Republican Sorrell. Party activists have said many grassroots Republicans lost money, while others were lured by ads on shows hosted by conservatives, including Erick Erickson, Hugh Hewitt, and the late Charlie Kirk.
"I take full responsibility for my actions and am resolved to spend the rest of my life trying to repay as much as I can to the many people I misled and let down," Frost said in a statement in July as a federal judge ordered his assets frozen.
A federal court has appointed a receiver to recover money for investors. Last month, receiver Gregory Hays wrote that he's still piecing together 48,000 financial transactions and that some borrowers are fighting to retain real estate and other collateral that the receiver says was pledged to secure loans.
The Associated Press contributed to this report.
