Georgia Securities Commissioner issues emergency order against Cobb County adviser, alleging a $6.6 million Ponzi scheme
Georgia's Securities Commissioner has issued an emergency order against a Cobb County financial adviser, accusing him of steering millions of dollars — much of it from senior citizens — into what the state describes as unregistered and unsuitable investments connected to the collapse of First Liberty Building & Loan.
In a 28-page Emergency Order to Desist, Secretary of State and Securities Commissioner Brad Raffensperger barred Timothy Nathaniel Darnell of Powder Springs from acting as an agent or investment adviser representative in Georgia and ordered him to pay a $500,000 civil penalty.
State investigators allege Darnell directed at least 45 individuals - many of whom are seniors - to invest approximately $6.6 million in First Liberty securities between 2020 and 2025, collecting nearly $250,000 in commissions in the process.
Allegations tied to First Liberty collapse
The investigation began July 1, 2025, after First Liberty's collapse became public and more than 150 complaints were filed with the Commissioner's office.
According to the order, Darnell was previously registered as a broker-dealer agent and investment adviser representative with Bankers Life entities before his registration was terminated in September 2025. The state cites a Form U5 filed by Bankers Life alleging failure to disclose outside business activities, participation in unapproved private securities transactions, and use of off-channel communications.
Investigators say Darnell placed 76 First Liberty investments over several years, with roughly 60% of the affected individuals age 60 or older.
Commissions and outside business activity
The order alleges Darnell received a 1% commission when clients invested in First Liberty and an additional 1% annually while they remained invested. Those commissions — totaling about $249,000 — were deposited into an LLC called Perservero Properties, according to the state.
Investigators contend Darnell failed to properly disclose this outside business activity and misrepresented the purpose of the LLC to his firm. The order also alleges Perservero's account was used primarily for personal expenses rather than real estate ventures as described in disclosure forms.
Alleged guarantees and suitability concerns
The Commissioner's findings outline multiple investor affidavits claiming Darnell described the First Liberty investments as "guaranteed," "secure," and appropriate for retirement portfolios.
The state alleges Darnell failed to conduct individualized suitability analyses and did not disclose conflicts of interest tied to commission payments.
In one instance cited in the order, a 73-year-old retiree and his spouse invested $350,000 in First Liberty products and fear their principal may be a total loss. Other retirees allegedly invested substantial portions of their net worth after rolling over employer-sponsored retirement plans.
Emergency action and next steps
Under Georgia law, the Commissioner may issue an emergency order if deemed necessary to protect the public. The order requires Darnell to immediately cease and desist from violating the Georgia Uniform Securities Act and bars him from securities activity in the state.
Darnell has 30 days to request a hearing. If no hearing is requested, the order becomes final by operation of law.
The Emergency Order states it does not prevent the Commissioner from seeking additional remedies related to the First Liberty investigation.
CBS News Atlanta has reached out to Darnell and his listed counsel for comment and will update this story with any response.
