Georgia Republicans Reel From $140 Million Ponzi Scheme

Investors demand answers 7 months after collapse of First Liberty Building & Loan

Published on Feb. 10, 2026

Got story updates? Submit your updates here. ›

Seven months after the collapse of an alleged $140 million Ponzi scheme that touched the top ranks of Republican politics in Georgia and Alabama, some investors are impatient to get their money back. The scheme, run by Brant Frost IV, defrauded at least 300 investors and involved prominent GOP figures like former Georgia GOP Chairman David Shafer and Alabama state Auditor Andrew Sorrell. A federal receiver is working to recover funds, but investors say the process has been slow and expensive.

Why it matters

The fallout from the First Liberty Ponzi scheme has roiled the Republican political establishment in Georgia, with lawmakers pushing to shift securities regulation away from the Secretary of State's office. The case highlights the vulnerability of politically-connected investors to financial fraud and the challenges in recovering funds for victims.

The details

Federal investigators said the company defrauded at least 300 investors of at least $140 million. Brant Frost IV, who led First Liberty, had decades of involvement in conservative politics. His company claimed to be a lender making high-interest short-term loans to businesses, paying investors up to 16% annual interest. But a U.S. Securities and Exchange Commission lawsuit alleges Frost stole $17 million for himself, his relatives and affiliated companies, and loaned millions more that borrowers never repaid.

  • The First Liberty Building & Loan Ponzi scheme collapsed in July 2025.
  • The federal receiver was appointed to recover funds for investors in August 2025.
  • As of December 31, 2025, the receiver had $3.59 million in assets on hand.

The players

Brant Frost IV

The former leader of First Liberty Building & Loan, who is accused of defrauding at least 300 investors of $140 million through a Ponzi scheme.

David Shafer

The former chairman of the Georgia Republican Party, who lost money through the First Liberty Ponzi scheme.

Andrew Sorrell

The Alabama state Auditor, who also lost money through the First Liberty Ponzi scheme.

Gregory Hays

The federal receiver appointed to recover funds for investors in the First Liberty Ponzi scheme.

Brad Raffensperger

The Georgia Secretary of State, whose office is investigating the First Liberty fraud and proposing new laws to help investors recover funds.

Got photos? Submit your photos here. ›

What they’re saying

“We feel like we're never going to see it, as old as we are,”

— Thomas Todd, 77-year-old retired business owner (Georgia Secretary of State)

“Schemes like this are set up to create an illusion and they are schemes that pay,”

— Noula Zaharis, Assistant Commissioner of Securities (Georgia House Banks and Banking Committee)

“I just don't really see a system or plan in place to preemptively identify these things and eliminate these bad actors before they get too far gone,”

— Carter Barrett, Republican state Representative (Georgia House Banks and Banking Committee)

What’s next

The federal receiver, Gregory Hays, is continuing to piece together the 48,000 financial transactions involved in the First Liberty Ponzi scheme and sell off assets to recover funds for investors. Georgia lawmakers are also considering a bill to shift securities regulation from the Secretary of State's office to the Department of Banking and Finance.

The takeaway

The collapse of the $140 million First Liberty Ponzi scheme has shaken the Republican political establishment in Georgia, with prominent GOP figures among the defrauded investors. The case highlights the need for stronger financial oversight and investor protections, especially when it comes to politically-connected investment schemes.