A tale of greed and fraud indeed. According to reports, a Georgia Republican has been found to be at the centre of a wide-ranging ponzi scheme involving his company First Liberty Building & Loan. The issue? Officials say he lied to investors but that was only the beginning.
The Lowdown
In a complaint filed on Thursday, federal authorities are taking aim at Georgia Republican Brant Frost IV who they say lied to more than 300 investors about the extent and very scope of his business.   The civil lawsuit filed by the US Securities and Exchange Commission (SEC) said First Liberty Building & Loan administered by Frost, lied to hundreds of investors about the extent of its loan business (high interest of course) to companies.   Instead of getting the appropriate funds to those investors, officials allege that Frost used the accrued funds to pay off earlier investors in the scheme.
In case it couldn’t get worse it does. In the same complaint, it is alleged that Frost took more than $19m worth of investor funds for himself, his family, and affiliated companies even as his business was actually going broke. In some instances, he even purchased upwards of $160k woooooooorth of jewels and $335,000 at a rare coin dealer’s event.
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