NEWNAN, Ga. — First Liberty Building and Loan is now at the center of the largest fraud investigation in the history of the Georgia Secretary of State’s Office.
Channel 2’s Richard Elliot spoke exclusively with the head of that investigation, who believes there are many more victims of the alleged Ponzi scheme.
Federal investigators originally believed there were about 300 investors in First Liberty, but state investigators now think that number may be much, much higher and are spread out over 10 states.
“When people invested in this, they didn’t just take a portion of their assets or their life savings. They put everything there,” said Noula Zaharis, Assistant Commissioner of Securities with the Secretary of State’s Office.
Zaharis told Elliot they’ve been in contact with more than 100 investors so far, most of them elderly who say they’ve lost everything.
“They are grieving. Our team has spoken to individuals in their late 70s and 80s who are actually on the phone crying with our team because they’ve lost everything. They’re not in a place where they can go out and get a job. They don’t know how they’re going to make it,” Zaharis said.
- Receiver uncovers more than $1M in political ‘donations’ made by First Liberty owner, documents show
- Alabama is now investigating First Liberty after Ponzi scheme allegations came to light
- Court-ordered receivers set up website for victims of alleged First Liberty Ponzi scheme
- Receivers remove computers, documents from First Liberty after Ponzi scheme allegations
- SEC charges closed lending co. with defrauding about 300 investors in Ponzi scheme
- Federal officials say a prominent Georgia Republican was running a $140 million Ponzi scheme
- Investors worry they will never see money again after company abruptly closes its doors
The federal Securities and Exchange Commission shut down First Liberty in early July.
Elliot was there as the receiver hauled out boxes of financial documents and hard drives.
Investigators said Edwin Frost IV used investor money to fund a lavish lifestyle and to make political donations to Republican candidates and committees.
In a statement, Frost took full responsibility for First Liberty and apologized for misleading investors.
“Every story I’ve heard stacks like another log on a fire of just anger,” said Gabe Sterling, Secretary of State office COO.
Sterling believes there are many more investors and a lot more missing money. He’s imploring them to come forward to help his office build their case.
“At this point, every person who’s ever been a victim like this needs to know it’s not their fault. It’s these other guys’ fault,” Sterling said.
They say this investigation involves people other than just Frost.
The Secretary of State’s Office has a place on its website where potential victims can fill out their information. They want to talk to you.
Elliot did reach out to Frost’s attorneys for comment on Tuesday, but so far, he hasn’t heard back from them.
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