Once upon a time, in the land of Georgia, there lived a man named Edwin Brant Frost IV, who had a rather peculiar way of making money. You see, dear reader, Mr. Frost had a loan business called First Liberty Building & Loan, and it was as magical as it sounds—until it wasn’t.
The U.S. Securities and Exchange Commission (SEC) has decided to tell the tale of how Mr. Frost allegedly turned his loan business into a grand Ponzi scheme, fleecing 300 unsuspecting investors of a whopping $140,000,000. Now, that’s what I call a piggy bank robbery! 🐷💰
According to the SEC, Mr. Frost and his business were accused of running a Ponzi scheme by misappropriating funds and misleading investors. From 2014 to June 2025, the firm offered investors promissory notes and loan participation agreements with returns of up to 18%. Can you believe it? 18%! That’s more than the interest on a credit card! 🤯
Mr. Frost and his company assured investors that the defaulted loans would be repaid by borrowers using funds from the Small Business Administration or other commercial lenders. But, oh dear, it seems that the borrowers were as reliable as a leaky faucet. 💦
Since 2021, Mr. Frost allegedly ran First Liberty Building & Loan as a Ponzi scheme after most loans defaulted. The SEC accuses Frost of using new investor capital to make principal and interest payments to existing investors. It’s like a game of financial hot potato, but with a lot more tears. 😢
The complaint also alleges that Mr. Frost misappropriated the funds for personal use, such as purchasing rare coins, paying off personal debt, and going on vacations. I mean, who wouldn’t want to buy rare coins and go on vacation? But at the expense of 300 investors? That’s just greedy, Mr. Frost! 🤦♂️
Justin C. Jeffries, Associate Director of Enforcement for the SEC’s Atlanta Regional Office, had this to say:
“The promise of a high rate of return on an investment is a red flag that should make all potential investors think twice or maybe even three times before investing their money. Unfortunately, we’ve seen this movie before – bad actors luring investors with promises of seemingly over-generous returns– and it does not end well.”
In a statement to Fox News, Mr. Frost admitted his involvement and wrongdoing in the scheme and said he would cooperate with investigators. I guess the jig is up, Mr. Frost! 🕵️♂️
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2025-07-14 17:01