COWETA COUNTY, Ga. — The man responsible for getting money back to the victims of what federal investigators call a $140 million Ponzi scheme says it could take years.
Federal and state investigators claim that Brant Frost IV, the founder of First Liberty Building and Loan in Newnan, used investor funds for personal luxury and Republican donations.
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Greg Hays, the court-appointed receiver, described the financial records of First Liberty as being “in shambles,” making the recovery process challenging.
“It’s just stacks of stuff that we’ve got to get organized,” Hays told Channel 2’s Richard Elliot in an exclusive interview. “The records are just, sort of, in shambles. I mean, there’s nothing organized. We try and get it as ordered as best we can.”
These records are crucial for recovering funds for investors like 93-year-old James McMaster, who invested $1.3 million.
Hays noted that more than 90% of the loans made by First Liberty defaulted, leaving the company with only $1.2 million in the bank, far short of what is needed to repay investors.
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Investigators say Frost allegedly retained nearly $5 million for personal use and political contributions.
Hays says the recovery process could take years.
“It’s a difficult case. We’ve got a lot of bad loans. We’ve got a lot of recoveries to make. We’ve got all kinds of difficult situations,” Hays said.
He says results can vary depending on the case. He says he’s seen some cases where investors got back 80% of their money while some got back just 20%.
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