First Liberty Ponzi Scheme: Receiver Reports Recovered Funds

As the Securities and Exchange Commission continues to investigate the Newnan-based lending firm First Liberty Building & Loan for defrauding investors in its Ponzi scheme operation, the court-appointed Receiver has released new information and plans as the year begins.

As of January 30, the Receiver has recovered $887,917.51 from Receivership bank accounts. The various auctions that took place on the Receiver’s assets have generated additional proceeds. The vehicle auction brought in $138,883.42, and the auctioning of the Newnan office brought in $606,000, or net $580,760 before lien payoff and closing costs. Of the many political donations that the Frost family made through both First Liberty itself and its funds, $300,000 has been voluntarily returned by politicians and political organizations thus far. Other funds collected include a luxury watch sold for $10,000 and silver coins totaling over $23,000.

Curepoint LLC, a medical services company that borrowed multiple large loans totaling roughly $6.45 million from First Liberty, later filed bankruptcy. The Receiver negotiated a settlement with the Curepoint bankruptcy trustee to increase the bankruptcy claim by $275,000, with the Receiver expecting to receive about $216,216.93 in cash from the bankruptcy estate.

Another major First Liberty borrower, 2406 Cancer Care LLC, is a healthcare entity managed by Erich G. Randolph. These loans total more than $9 million, and the organization still owed $4,477,680 as of December. Cancer Care is disputing these fees and sent $2,397,680.61 to the Receiver at the end of December. the Receiver accepted these funds but maintains that Cancer Care still owes additional funds. If the two cannot come to a settlement, the Receiver will litigate to collect the rest of the funds.

Right now, the Receiver is prioritizing loan enforcement and litigation. Roughly 60 defaulted loans remain outstanding. For the borrowers attempting to intervene in collection, the court has entered a Procedures Order to begin litigation over disputed claims. 

As for other bank accounts and transactions traced back to the organization, the investigation is ongoing in reconstructing records from 19 bank accounts and about 48,000 transactions. This process is taking longer than expected as a result of poor records and slow bank responses, but the Receiver hopes to have all accounting done by March 7. 

All in all, in 2026 the Receiver will continue on the path of loan recovery, but expects that litigation is unavoidable.