NEWNAN, Ga. — The court-appointed receiver investigating the alleged Ponzi scheme involving First Liberty Building & Loan, and its owner, Edwin Frost IV, has uncovered more than $1 million in political “donations” that were made with investors’ money, a new court document shows.
Receiver Gregory Hays has been appointed to recover as much as he can of the $140 million that Frost is accused of taking from investors.
In his first report to the court, Hays said his team has uncovered almost 1,000 political “donations” that Frost made using investors’ money, totaling over $1 million.
Frost and his family promoted First Liberty heavily on conservative media with paid commercials and went to church groups to ask people to invest.
Federal investigators said the scheme, which started in 2021, took more than $140 million from investors and used that money to buy things like a luxury watch, rare coins and even a vacation home rental in Maine.
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Since the SEC announced the allegations, anyone who received money from Frost has been asked to give it back to the receiver to help investors recoup their losses.
Last week, only Channel 2 Action News was there when Georgia Secretary of State Brad Raffensperger turned over $8,400 that he received as political donations from Frost.
Raffensperger said his office is also investigating First Liberty. Earlier this week, Alabama’s Secretary of State also said his office was investigating First Liberty and was urging any politicians in that state to also give back and donations.
On Tuesday, the Georgia Republican Party said it had turned over more than $36,000 to the receiver for donations dating back to 2021, saying the move was their “moral duty to do our part to assist those who have been affected by this tragedy.”
Hays has published a website for those First Liberty investors where they can track the progress of the case.
Hays has 90 days to finish his investigation and write up his report. He said he wants investors to know he’s working hard to find the money.
The charges currently brought against Frost and First Liberty are civil, not criminal.
Sources confirmed to Channel 2’s Richard Elliot that the FBI is also looking into the case.
Frost has released a statement saying he takes full responsibility for the charges filed against him.
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