Georgia Banker’s $140M Ponzi Scheme Leaves Investors Reeling

Wearing a Halo, running Hustle. He wasn’t just another guy in a suit; he was the guy you trusted with your retirement. Brant Frost IV, a devout Christian, a deep-pocketed Georgia Republican, and a familiar face in conservative circles, now finds himself at the center of a financial scandal. According to the SEC, Frost didn’t just bend the rules; he rewrote them with a $140 million Ponzi scheme that hit nearly 300 investors, many of whom were tied to his religious and political communities. Frost wasn’t operating in the shadows. He showed up in churches, GOP events, and local fundraisers like clockwork. His company, First Liberty Building & Loan, advertised on conservative radio and podcasts, promising “Wall Street returns for Main Street investors.” Turns out, those promises were more smoke than steak.

The Good Ol’ Boys Got Burned

From 2014 through mid-2025, Frost offered high-yield “bridge loan” notes, promising returns up to 18%, claiming funds were used to help small businesses waiting for SBA or bank loans. The sales pitch? Safe, short-term loans backed by real assets. But here’s the kicker: by 2021, as much as 80% of returns were coming from new investor funds, not actual loan repayments. And while investors thought their money was hard at work, Frost was blowing cash like he just won Powerball:

• $335,000 to a rare coin dealer
• $230,000 on a summer vacation home in Kennebunkport
• $160,000 on jewelry
• $20,800 on a luxury Patek Philippe watch
• $2.4 million on credit card payments
• $570,000 in political donations

Even as regulators came knocking, Frost allegedly continued to spend and issue checks, ignoring compliance and financial warning signs. His company defaulted on most loans, with as many as 90% of borrowers failing to repay them.

Preacher Vibes, Ponzi Moves

This wasn’t your average Wall Street grift. It was small-town trust turned toxic. Frost played the role of “faithful advisor,” leaning into church connections, political loyalty, and community pride. Many victims were older, conservative investors who saw him not just as a financial expert, but as a moral leader. First Liberty lured investors with promissory notes and statements showing steady growth, but they were cooked numbers. A spreadsheet tracked fake gains while Frost kept his reputation squeaky clean in public. According to the SEC, the illusion ran so deep that by the time investors got suspicious, it was already too late.

The House of Cards Crashed

So, where do things stand? First Liberty has ceased operations, shuttered its doors, and stopped answering calls. A federal judge has frozen Frost’s assets, and a court-appointed receiver is now untangling the mess. Frost and his companies have agreed to enforcement actions without admitting guilt, but the final financial penalties are still TBD. Meanwhile, Frost has publicly claimed he “takes full responsibility” and hopes to repay victims, though the firm had just $2.67 million in cash left as of May 30. With an average investor hit of nearly half a million dollars, that’s pocket change. Criminal charges haven’t been filed yet, but federal and state investigations are ongoing. Georgia’s Secretary of State and the FBI are conducting a deeper investigation, and investor lawsuits are expected to follow.

Hard Knocks for Financial Professionals

This case isn’t just a headline. It’s a wake-up call. Here’s what finance professionals need to reflect on:

• A charming face does not replace due diligence. Frost used social capital to shield himself from scrutiny. Regardless of the trustworthiness of the source, third-party audits and reviews are crucial.
• Red flags were ignored. Unrealistic returns, complex financial explanations, and delays in redemption should always trigger an investigation.
• Faith and finance must remain separate. Professionals must help clients evaluate offers based on substance, not sentiment.
• Regulatory gaps still exist. Despite post-Madoff reforms, Ponzi schemes persist because their operators continue to evolve. Advisors need to educate clients about fraud awareness, especially in underregulated corners of private lending.

Can the Damage Be Undone?

For victims, the road ahead is bleak. Some have lost their retirement savings, while others face the prospect of foreclosure. Frost’s political influence has collapsed, and his family, also active in GOP circles, has gone quiet. As courts and regulators work through restitution, the emotional toll is undeniable. But this case is bigger than one man. It’s a cautionary tale about charisma, unchecked power, and the dangerous comfort of familiarity. How many other schemes are quietly coasting on charm and a handshake? Want more breakdowns like this, minus the corporate fluff? Follow MYCPE ONE Insights on LinkedIn. Our newsletter brings you the sharpest financial stories with no jargon, just insight that hits home.