(The Center Square) – Georgia banker Brant Frost IV doled out thousands in donations to Republican candidates and conservative political action committees in his home state and beyond and one Georgia official said candidates should not keep them.
Days after the U.S. Securities and Exchange Commission accused the banker of running a $140 million Ponzi scheme, Georgia Secretary of State Brad Raffensperger is calling on anyone who took campaign donations from Frost of his bank, Newnan’s First Liberty Building & Loan, LLC, to turn them over to a court-appointed receiver set up to help Frost’s victims.
“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 Monday. “Ill-gotten gains do not belong in the State Capitol.”
The Securities and Exchange Commission accused Frost of operating a scheme where he sold promissory notes and loans to investors with the promise of a return of up to 18%, according to a news release. The funds would “be used to make short-term bridge loans to businesses at relatively high interest rates,” the commission said.
Some of the funds were used to make bridge loans, but most defaulted.
“Since at least 2021, First Liberty operated as a Ponzi scheme by using new investor funds to make principal and interest payments to existing investors, according to the complaint,” the SEC said. “The complaint further alleges that Frost misappropriated investor funds for personal use, including by using investor funds to make over $2.4 million in credit card payments, paying more than $335,000 to a rare coin dealer, and spending $230,000 on family vacations.”
More than $570,000 of the investor funds were used to make political donations, according to the SEC filing.
Records from the Federal Election Commission show Frost has donated money personally and through the bank. The two most recent donations are to the Georgia Republican Party for $355 and a $25,000 donation to the political action committee Working for America, Inc.
Other Republicans who received donations in the past few years are U.S. Reps. Andy Ogles, R-Tenn., Chip Roy, R-Texas, Lauren Boebert, R-Colo. and a political action committee for former Fla. Rep. Matt Gaetz, according to online records.
Raffensperger said his office would also be taking calls from people who may have been victims of the Ponzi scheme.
“We take allegations of financial fraud seriously, especially when it puts hardworking Georgians at risk,” Raffensperger said. “If you believe you’ve been misled or victimized by First Liberty, we need to hear from you.”
Brant apologized through his attorney, according to FOX News.
“I take full responsibility for my actions and am resolved to spend the rest of my life trying to repay as much as I can to the many people I misled and let down. I will be cooperating with the receiver and federal authorities and ask that everyone allow the receiver time to sort things out and do his best to repair the damage I created,” Frost said.
