After his business collapsed, the U.S. Securities and Exchange Commission says that an Atlanta man defrauded $300 in investors through a Ponzi Scheme.
The SEC has released a press release accusing Edwin Brant Frost IV, his company First Liberty Building & Loan and him of operating a Ponzi Scheme by misappropriating money and misleading investors.
Authorities claim that between 2014 and 2025 the company operated offering promissory note and loan participation contracts with up to 18% returns for businesses to borrow short-term at high rates of interest. The loans were rarely defaulted upon. Frost’s company and Frost allegedly promised investors that defaulted loan repayments would come from Small Business Administration funds or commercial lenders.
Frost allegedly has been running First Liberty Building & Loan since 2021 as a Ponzi Scheme after the majority of loans have defaulted. Frost is accused by the SEC of using capital from new investors to pay principal and interest to existing investors.
Frost is also accused of misappropriating funds to pay off debt, go on vacations, and buy rare coins. Frost and First Liberty Building & Loan are accused by the SEC of defrauding investors of more than $140 million.
Justin C. Jeffries is the Associate Director for Enforcement at SEC Atlanta Regional Office.
The promise of high returns on investments is a warning sign that all investors should consider before they invest their money. We’ve all seen it before: bad actors lure investors by promising a seemingly generous return. It doesn’t end well .”
Frost admitted his wrongdoing and involvement in the scam and said he would cooperate with the investigators.
The receiver and federal authorities will be cooperating with me and I ask that everyone give the receiver time to sort things out and do his best to repair the damage I created. The receiver will work with federal authorities, and I ask everyone to give the receiver some time to fix the problems I caused.
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The post Alleged Ponzi fraudster Fleeces 140,000,000,000 from 300 Investors after Loan Business Collapsed: SEC can be updated as new information becomes available.
