Georgia man gets 15 years for $76m Ponzi scheme targeting 300 investors

A Georgia businessman who used religion and conservative politics to attract investors into a major investment fraud has been sentenced to 15 years in federal prison. Chief US District Judge Leigh Martin May sentenced Edwin Brant Frost IV for running a $76 million (£58.5 million) Ponzi scheme that caused serious financial losses for more than 300 victims. Frost, 69, ran the fraudulent business through a company based in Newnan called First Liberty Building and Loan, LLC. The court also ordered him to pay $76,454,374.39 in restitution after he pleaded guilty to wire fraud charges earlier this year.

Promises of high returns and community faith

According to the United States Attorney’s Office for the Northern District of Georgia, Frost promoted First Liberty as a lender that shared Christian values, supported conservative politics, and helped American small businesses. From around 2021 through July 2025, Frost asked individual investors to provide money for short-term “bridge loans” intended for commercial borrowers. He told investors their money was protected and promised monthly returns of between 8 percent and 18 percent. In marketing materials and presentations, Frost claimed First Liberty made money only from transaction fees and the difference between interest rates. He also told clients that borrowers would reliably repay the loan principal and interest through refinancing. He often claimed that borrowers had already received pre-approval for loans backed by the Small Business Administration. Federal prosecutors later revealed that these claims were almost entirely false. Few, if any, borrowers had received Small Business Administration pre-approval. By 2021, the company’s legitimate lending business was struggling as several bridge loans failed to be repaid.

Siphoning funds for luxury living and political influence

Instead of telling investors that loans were failing and the business was losing income, Frost hid the company’s financial problems. He began using money from new investors to pay the interest owed to earlier investors, a practice known as a Ponzi scheme. Federal investigators found that Frost transferred at least $5 million of investor money directly into his personal accounts and related businesses. According to court documents made public by the Department of Justice, Frost used the stolen money to support an expensive lifestyle and increase his political influence. His personal spending included:

The collapse of First Liberty wiped out the life savings of hundreds of investors, including many retirees and older people who trusted Frost because of his religious beliefs and political views. Speaking about the case, US Attorney Theodore S. Hertzberg strongly criticised Frost’s actions and the misleading promises he made to investors.“Like a false prophet and ravenous wolf in sheep’s clothing, Frost used religion, politics, and promises of profitable returns to lure investors into giving him their hard-earned money. He wickedly exploited their faith to plunder their accounts and enrich himself,” U.S. Attorney Hertzberg said in an official statement released by his office. “This was a stunning, sinful, and sacrilegious abuse of trust that wrecked hundreds of investors, including retirees and seniors who lost their life savings. “Law enforcement officials also stressed the serious harm suffered by families who had trusted Frost with their financial security.“Edwin Frost orchestrated a $76 million Ponzi scheme that devastated hundreds of investors who trusted him with their hard-earned money and financial futures. He exploited that trust to enrich himself, diverting millions for personal luxuries and political contributions while concealing the truth about his failing business,” said Marlo Graham, Special Agent in Charge of the Federal Bureau of Investigation’s Atlanta Field Office. “Today’s sentence holds Frost accountable for this massive fraud and reflects the FBI’s commitment to investigating complex financial crimes and pursuing justice for victims.”

Inter-agency cooperation seals conviction

The complex financial investigation involved several federal and state agencies working together to trace where the diverted money had gone. Kyle A. Myles, Special Agent in Charge of the Federal Deposit Insurance Corporation Office of Inspector General (FDIC OIG) Atlanta Region, highlighted the importance of cooperation between law enforcement agencies in bringing major fraud offenders to justice. “Mr. Frost orchestrated a multi-million dollar Ponzi scheme that defrauded hundreds of investors and used the proceeds from the fraud on lavish purchases for himself. Today’s sentencing brings him to justice for his crimes,” Special Agent in Charge Myles said. “The FDIC OIG will continue to work with our law enforcement partners to investigate and hold accountable fraudsters who deceive innocent victims out of their hard-earned savings.” Assistant United States Attorney Angela Adams prosecuted the case. The FBI and the FDIC OIG conducted the joint investigation, with additional help from the U.S. Securities and Exchange Commission and the Office of the Georgia Secretary of State. Frost pleaded guilty to wire fraud charges on 12 May 2026. After completing his 15-year prison sentence, he will serve three years of supervised release.