Major Investigation Launched into Alleged $140 Million Ponzi Scheme by First Liberty Building & Loan
Recently, the U.S. Securities and Exchange Commission (SEC) has taken significant action against Edwin Brant Frost IV and his company, First Liberty Building & Loan, LLC. This civil enforcement case accuses them of orchestrating a Ponzi scheme that allegedly targeted around 300 investors across the United States, accumulating fraudulent funds of approximately $140 million.
The SEC's complaint details how Frost solicited investments between 2014 and June 2025, primarily through loan participation agreements and promissory notes enticing investors with annual returns reaching as high as 18%. Initially, the source of these investments predominantly consisted of Frost's family and friends. However, beginning in 2024, the strategy shifted significantly. First Liberty expanded its reach by engaging in extensive advertising via conservative talk radio, podcasts, and religious media channels, marketing itself as an integral part of the so-called 'patriot economy'.
Investors were made assurances that their capital would be employed to provide short-term, high-interest bridge loans to small businesses. These loans were supposed to be secured through repayments from Small Business Administration (SBA) or other commercial loans. Unfortunately, the SEC alleges that Frost diverted substantial sums of investor money for personal expenses, including contributions to Republican candidates and organizations.
The financial outcomes of these loans did not align with the promises made. Many of the loans ended in default, and by 2021, Frost was allegedly utilizing funds from new investors to cover the returns of earlier investors. According to the SEC, a staggering 80% of payments to investors were drawn from new investments rather than legitimate loan repayments.
In response to these alarming allegations, the law firms Levine Kellogg Lehman Schneider + Grossman LLP (LKLSG) in Miami and The Doss Firm, LLC (Doss Law Firm) in Atlanta are investigating the potential for legal action aimed at aiding the victims of this alleged fraud. Individuals who invested in First Liberty’s bridge loans are encouraged to reach out to attorney Jason Doss for assistance. Together, LKLSG and Doss Law Firm aim to represent clients nationwide, working towards justice for those affected by this significant financial misconduct.
This case underscores the vital importance of due diligence for investors and the need for regulatory bodies to closely monitor the financial industries. Potential victims of the First Liberty scheme are left with challenging questions about recouping their investments, emphasizing the need for professional legal guidance in such complex situations. The unfolding events surrounding this investigation will likely spark further discussions on investment safety, regulatory frameworks, and the ethics of financial practices.
If you or someone you know has been impacted by what could be one of the most notable fraud cases in recent history, now is the time to seek help. Visit the law firms' respective websites or contact them directly to start the conversation about your case and explore your options for recovery.
The SEC's complaint details how Frost solicited investments between 2014 and June 2025, primarily through loan participation agreements and promissory notes enticing investors with annual returns reaching as high as 18%. Initially, the source of these investments predominantly consisted of Frost's family and friends. However, beginning in 2024, the strategy shifted significantly. First Liberty expanded its reach by engaging in extensive advertising via conservative talk radio, podcasts, and religious media channels, marketing itself as an integral part of the so-called 'patriot economy'.
Investors were made assurances that their capital would be employed to provide short-term, high-interest bridge loans to small businesses. These loans were supposed to be secured through repayments from Small Business Administration (SBA) or other commercial loans. Unfortunately, the SEC alleges that Frost diverted substantial sums of investor money for personal expenses, including contributions to Republican candidates and organizations.
The financial outcomes of these loans did not align with the promises made. Many of the loans ended in default, and by 2021, Frost was allegedly utilizing funds from new investors to cover the returns of earlier investors. According to the SEC, a staggering 80% of payments to investors were drawn from new investments rather than legitimate loan repayments.
In response to these alarming allegations, the law firms Levine Kellogg Lehman Schneider + Grossman LLP (LKLSG) in Miami and The Doss Firm, LLC (Doss Law Firm) in Atlanta are investigating the potential for legal action aimed at aiding the victims of this alleged fraud. Individuals who invested in First Liberty’s bridge loans are encouraged to reach out to attorney Jason Doss for assistance. Together, LKLSG and Doss Law Firm aim to represent clients nationwide, working towards justice for those affected by this significant financial misconduct.
This case underscores the vital importance of due diligence for investors and the need for regulatory bodies to closely monitor the financial industries. Potential victims of the First Liberty scheme are left with challenging questions about recouping their investments, emphasizing the need for professional legal guidance in such complex situations. The unfolding events surrounding this investigation will likely spark further discussions on investment safety, regulatory frameworks, and the ethics of financial practices.
If you or someone you know has been impacted by what could be one of the most notable fraud cases in recent history, now is the time to seek help. Visit the law firms' respective websites or contact them directly to start the conversation about your case and explore your options for recovery.
Topics Financial Services & Investing）
【About Using Articles】
You can freely use the title and article content by linking to the page where the article is posted.
※ Images cannot be used.
【About Links】
Links are free to use.