SEC Targets Alleged $140M Ponzi Scheme in Georgia, Charges Company and Founder

The U.S. Securities and Exchange Commission (SEC) has filed charges against First Liberty Building & Loan, LLC, and its founder and owner, Edwin Brant Frost IV, alleging they orchestrated a Ponzi scheme that defrauded around 300 investors of at least $140 million.

From 2014 to June 2025, First Liberty and Frost sold promissory notes and loan participation agreements promising returns up to 18%, claiming funds would be used to make short-term bridge loans to businesses at relatively high interest rates. According to the SEC, most loans defaulted, contrary to claims of strong performance and repayment via Small Business Administration or other commercial loans.

The SEC alleges that since 2021, First Liberty has used new investor funds to pay existing investors. Frost also allegedly misappropriated millions for personal expenses, including $2.4 million in credit card payments, $335,000 to a rare coin dealer, and $230,000 on family vacations.

Filed in the U.S. District Court for the Northern District of Georgia, the SEC’s complaint seeks an asset freeze, permanent injunctions, civil penalties, and disgorgement of ill-gotten gains. A conduct-based injunction is also sought against Frost.

“The promise of a high rate of return on an investment is a red flag that should make all potential investors think twice or maybe even three times before investing their money,” said Justin C. Jeffries, Associate Director of Enforcement for the SEC’s Atlanta Regional Office, warning against “over-generous” pitches that too often end in financial damage.

In May, the SEC filed charges against Kenneth Mattson, former CEO of real estate investment firm LeFever Mattson, for a $46 million Ponzi-like investment Scheme.