Bankers Life to Repay $7M to First Liberty Fraud Victims

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A major financial services firm, Bankers Life, has agreed to repay nearly $6.7 million to more than 40 investors who lost money in the collapse of the politically connected First Liberty Building & Loan in Newnan, Georgia. The restitution stems from allegations that a former financial adviser with deep roots in Georgia GOP politics steered clients to the now-defunct firm, which federal regulators accuse of orchestrating a $140 million Ponzi scheme that defrauded around 300 investors overall.

Why it matters

This case highlights the ongoing fallout from the First Liberty fraud, which impacted hundreds of Georgia investors and exposed the risks of trusting politically connected financial advisers. The restitution deal brokered by the Georgia Secretary of State's office aims to provide some relief to victims, though many are still owed significant sums lost in the scheme.

The details

According to the agreement, Bankers Life will repay $6.7 million to over 40 investors who were steered by the former First Liberty financial adviser to the now-defunct firm. Federal regulators have accused First Liberty of running a $140 million Ponzi scheme that defrauded around 300 investors in total.

• The First Liberty fraud scheme collapsed in 2025.
• The SEC sued First Liberty in July 2025 for the alleged $140 million Ponzi scheme.
• The restitution deal with Bankers Life was brokered by Georgia Secretary of State Brad Raffensperger in April 2026.

What they’re saying

What’s next

The restitution deal with Bankers Life is expected to provide some relief to over 40 victims of the First Liberty fraud, though many other investors are still owed significant sums lost in the $140 million Ponzi scheme.