Investors Seek $140M Recovery from Alleged Georgia Ponzi Scheme

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Seven months after the collapse of an alleged $140 million Ponzi scheme in Georgia and Alabama, some investors are growing impatient to recover their lost funds. The scheme, operated by Brant Frost IV's First Liberty Building & Loan, defrauded at least 300 investors, with some high-profile Republican officials among the victims. A federal receiver has been appointed to recover assets, but the process is proving to be expensive and protracted.

Why it matters

The First Liberty Ponzi scheme has raised concerns about securities regulation and oversight in Georgia, with some Republican lawmakers pushing to transfer oversight from the Secretary of State's office to the Department of Banking and Finance. The case has also highlighted the impact of such schemes on grassroots Republican supporters and the use of investor funds for political donations.

The details

Federal investigators said First Liberty defrauded at least 300 investors of at least $140 million. The company, led by Brant Frost IV, claimed to be a lender making high-interest short-term loans to businesses, but a lawsuit alleges Frost stole $17 million for himself, his relatives, and affiliated companies, and loaned millions more that borrowers never repaid. Among the victims were a company run by former Georgia GOP Chairman David Shafer, Alabama state Auditor Andrew Sorrell, and a political action committee controlled by Sorrell. The receiver appointed to recover funds, Gregory Hays, has so far recovered $3.59 million in assets, including the sale of luxury vehicles and Frost's Patek Phillipe watch, as well as the return of over $300,000 in political donations made with investor funds.

• The First Liberty Ponzi scheme collapsed in July 2025.
• The federal receiver was appointed in August 2025 to recover funds for investors.
• As of December 31, 2025, the receiver had $3.59 million in assets on hand.
• An auctioneer sold five luxury vehicles and Frost's watch in January 2026, netting almost $149,000.
• The receiver is also selling the First Liberty office in Newnan, Georgia for $581,000.

What they’re saying

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 is working to recover additional assets, including real estate and other collateral that was pledged to secure loans. The receiver has also received over $300,000 back from more than 1,000 political donations made with investor funds. Georgia Secretary of State Brad Raffensperger is proposing new legislation to allow his office to directly order fraudsters to repay investors.