Georgia secretary of state asks politicians to return money from alleged Ponzi scheme

The public reaction to the meltdown of a financial institution connected to Republican politics in Georgia continued Monday as Secretary of State Brad Raffensperger called on campaign finance recipients to return any contributions from First Liberty Building and Loan or the family that controlled it. “Now is the time for every elected official, candidate, or political action committee who received financial support from this entity currently under investigation to stand up and help the victims,” Raffensperger said. “Ill-gotten gains do not belong in the State Capitol.” The federal Securities and Exchange Commission sued the institution last week alleging it had operated as a Ponzi scheme, bilking investors. The complaint in U.S. District Court for the Northern District of Georgia said Edwin Brant Frost IV, owner and president of First Liberty, used investor funds to make more than $570,000 in political donations. The company raised at least $140 million from about 300 investors, telling them that their money would go toward short-term, high-interest, small business loans, the lawsuit said. Frost, who is also a named defendant, misrepresented the success of the loan program to his investors, the suit said, noting that he also used their money to pay himself and his family at least $5 million. Frost’s son, Brant Frost V, is chairman of the Coweta County Republican Party. “We take allegations of financial fraud seriously, especially when it puts hardworking Georgians at risk,” Raffensperger said, urging anyone who lost money in a transaction with First Liberty to contact his office immediately. “If you believe you’ve been misled or victimized by First Liberty, we need to hear from you.” The post Georgia secretary of state asks politicians to return money from alleged Ponzi scheme appeared first on Rough Draft Atlanta.