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First Liberty founder gets 15 years for defrauding investors, ordered to repay $76 million
Brant Frost IV was sentenced in federal court after pleading guilty to wire fraud tied to the collapse of his Newnan-based lending company. Victims described financial losses and lasting harm as the judge ordered more than $76 million in restitution.
Brant Frost IV, founder of Newnan-based First Liberty Building & Loan, was sentenced Monday to 15 years in federal prison for wire fraud connected to the company’s collapse. U.S. District Judge Leigh Martin May also ordered him to pay more than $76 million in restitution.
Frost pleaded guilty in May to misusing investor funds. The wire-fraud charge carried a maximum sentence of 20 years. More than an hour of victim statements preceded the sentencing, with investors describing financial losses and the impact on their lives.
Federal regulators accused First Liberty of running a $140 million Ponzi scheme that targeted conservative and faith-based investors. The company offered investments promising returns as high as 13% annually, according to the account of the case. Regulators said money from newer investors was used to cover obligations to earlier investors, while some funds went to political contributions and personal expenses.
Federal officials said Frost and First Liberty used at least $570,000 in investor money for political donations. Frost, his family and businesses have contributed more than $1.4 million to political causes, much of it in recent years.
The restitution order addresses only part of the damage: investigators continue efforts to recover assets for investors. Georgia Secretary of State Brad Raffensperger is also investigating First Liberty, according to the report.