Receiver Hunts for Assets in $140 Million SBA Bridge Loan Ponzi Scheme
September 5, 2025
Bob Coleman
Founder & Publisher
Receiver Hunts for Assets in $140 Million SBA Bridge Loan Ponzi Scheme
Edwin Brandt Frost IV, a Georgia businessman accused of running a $140 million Ponzi scheme through First Liberty Building & Loan, is now the subject of a court-appointed receivership tasked with recovering funds for defrauded investors.
On July 10, the SEC filed a civil complaint alleging Frost raised money by promising investors guaranteed returns of 8% to 18% from bridge loans to small businesses awaiting SBA financing. According to the SEC, up to 90% of the loans defaulted, and returns were paid from new investor capital rather than actual loan proceeds.
A federal judge has appointed Atlanta-based receiver S. Hayes to oversee Frost’s various entities. Hayes is charged with identifying assets, freezing accounts, and pursuing clawbacks of improper transfers.
In a letter to investors, Hayes stated that his team is “in the very early stages” of investigating financial records, interviewing former employees, and “marshalling assets,” including bank accounts, real estate, and business interests. He also noted that Frost had donated more than $500,000 to Georgia politicians and that the receivership intends to claw back those contributions.
Hayes warned investors that recovery will take time and could be costly. “Our investigation will take months to complete, identify, manage, collect and liquidate the assets and determine the amount of distribution to investors and creditors,” he wrote. Investors will soon be asked to submit claim forms with documentation such as checks, wire transfers, and account statements.
The receiver emphasized that it is “much too early” to estimate potential recoveries. In similar cases, investors may recoup partial amounts after receiver and legal fees are deducted, though the SEC noted Frost’s widespread asset dissipation may limit overall recovery.
Frost previously admitted “aspects of the business were improper” and issued a public apology, pledging to assist in the recovery process. The SEC complaint, however, cites continued asset withdrawals by Frost in 2025 despite his admissions.
The receiver is expected to file a full report with the court within 60 to 90 days, providing a more detailed accounting of Frost’s assets and liabilities.