ATLANTA, Georgia — Seven months after the collapse of an alleged $140 million Ponzi scheme tied to First Liberty Building & Loan, defrauded investors are growing increasingly frustrated as federal and state officials work to recover a fraction of the lost funds.
Federal investigators say First Liberty defrauded at least 300 investors by promising returns as high as 16 percent through short-term business lending. Instead, the U.S. Securities and Exchange Commission alleges company leader Brant Frost IV stole roughly $17 million and issued loans that were never repaid, creating the illusion of a profitable operation.
A federal court-appointed receiver, Gregory Hays, is now tasked with untangling more than 48,000 financial transactions. As of Dec. 31, Hays reported $3.59 million in recovered assets, including proceeds from the sale of five luxury vehicles, a Patek Philippe watch, and pending real estate sales. He has also recovered more than $300,000 tied to political donations made using investor funds, though he warned the recovery process will be lengthy and costly.
Georgia Secretary of State Brad Raffensperger told investors his office is intensifying anti-fraud efforts, including proposing new legislation that would allow direct repayment orders. At the same time, Republican lawmakers are pushing House Bill 934, which would shift securities oversight away from his office, raising concerns about regulatory disruption.
Among those affected are politically connected Republicans, including figures linked to Georgia and Alabama politics. Some investors, including retirees, told officials they fear they may never recover their losses as legal and regulatory battles continue.
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