Georgia Businessman Brandt Frost IV Accused of Operating $140 Million Ponzi Scheme
August 1, 2025
Bob Coleman
Founder & Publisher
Georgia Businessman Brandt Frost IV Accused of Operating $140 Million Ponzi Scheme
Brandt Frost IV, a Georgia-based businessman, has been charged by the Securities and Exchange Commission (SEC) for allegedly operating a $140 million Ponzi scheme through his company, First Liberty Building & Loan.
According to the SEC’s July 10 civil complaint, Frost used investor funds to issue high-interest bridge loans to small business borrowers purportedly awaiting SBA financing. The SEC alleges that up to 90% of those loans defaulted, and that investor returns were paid using new capital, not from actual interest payments.
The scheme targeted investors through Frost’s personal, political, and religious networks. Investments were marketed as “conservative,” offering guaranteed returns of 8% to 18%. Approximately 300 investors participated, with an average investment size of $500,000.
From 2019 to 2025, Frost and his affiliated entities allegedly misappropriated over $5 million in investor funds for personal use, including:
- $230,000 to rent a vacation home in Kennebunkport, Maine
- $140,000 on jewelry
- $335,000 to a rare coin dealer
- $20,800 for a Patek Philippe watch
- $2.4 million in credit card charges
- $1.3 million in personal checks between October 2024 and April 2025
The SEC states that despite acknowledging wrongdoing, Frost continued to dissipate assets in 2025. On May 24, nine days after being interviewed by SEC officials, he withdrew $100,000 for personal use.
First Liberty’s business model involved issuing short-term loans to SBA applicants at 18–20% interest. The SEC complaint notes that most borrowers lacked SBA pre-approvals, and defaulted. Beginning in 2021, the fund entered a deficit and operated as a Ponzi scheme.
The fund formally ceased operations in 2025. A federal judge has frozen assets and appointed a receiver to recover funds. Total investor losses are currently estimated at $6 million, though recovery prospects remain limited due to widespread defaults and dissipation of assets. The SEC has not yet referred the case for criminal prosecution. If charges are filed, they would follow the civil proceedings.
Frost publicly stated, “I take full responsibility for my actions and resolve to spend the rest of my life trying to repay as much as I can to the many people I misled and let down.”
However, the SEC alleges that his conduct throughout 2025 contradicts this statement.