Widow Says First Liberty Ponzi Scheme Wiped Out Her Life Savings

A 73-year-old North Georgia widow says she lost her entire $50,000 life savings after investing in First Liberty Building & Loan, the Newnan-based company federal regulators have received a consent judgement for operating a $140 million Ponzi scheme.

In an exclusive interview with The Citizen, she asked to use the name “Lou” to protect her privacy. Widowed more than 40 years ago, she worked 34 years in customer service while raising three children largely on her own, saving carefully for retirement.

That $50,000 was all she had saved.

“They do not know,” Lou said of her children. “Our families do not know. We can’t — we just don’t. We can’t tell them. I mean, they would just be so devastated.”

A trusted referral

Lou said she was introduced to the investment in November 2024 through a longtime friend who had worked with Timothy Nathaniel Darnell, an insurance and securities professional.

Her friend had already invested and reported strong returns. By the time Lou met with Darnell, she said the return offered to her was 9%.

She met with him first at her friend’s home and later twice at her own home. He presented himself, she said, as a knowledgeable financial professional with licensing and experience.

“He supposedly had been to school to be a lawyer, financial advisor, had his license for insurance,” Lou said.

He assured her the investment was secure and that she could withdraw her funds if something went wrong.

“He said everything was secure,” Lou said. “There was a contract and all that… we would have our money back if anything happened, within 30 days.”

She said she has that promise in an email.

The money she invested represented decades of work.

“I’ve struggled my whole life,” she said. “I’ve always pinched pennies.”

After the collapse

When First Liberty began unraveling, Lou said Darnell told her she would get her money back, but it would take time.

She continued texting him for updates. Then communication stopped.

Soon after, she received a letter from Banker’s Life informing her that Darnell was no longer employed there. The Citizen previously reported that Darnell was terminated in September 2025 and that arbitration claims tied to First Liberty alleged misrepresentation and unsuitable recommendations.

Lou said she later spoke with him by phone.

“He said, ‘They can’t get blood out of a turnip,’” she recalled.

“I never received any interest, either,” Lou said.

Three longtime friends invested alongside her.

“Four, three beside myself,” Lou said. “Collectively, 50,000 a piece.”

Together, the four women lost $200,000.

Living without a safety net

Lou now lives on approximately $1,500 per month in Social Security before deductions. With her savings gone, she said she has no reserve to draw from.

“No,” she said when asked if she is able to make ends meet. “I’m driving a car that’s about ready to fall apart. My home needs all kinds of repairs. My bills are so high.”

She also faces health challenges, including lupus and fibromyalgia.

“It’s not good,” Lou said about her overall health.

She said she cannot bring herself to tell her children — one of whom is disabled — that her savings are gone.

“They do not know,” she said again. “We can’t tell them.”

Connections to the Frost family

Lou said she later learned that Darnell was close friends with Edwin Brant “E.B.” Frost V, who worked at First Liberty alongside his father, founder Brant Frost IV.

“He was friends with the youngest Frost that just got married,” Lou said. “They were best friends, and him and his wife both were in the wedding.”

The Citizen previously reported that Darnell appeared in the wedding party of Frost V in early 2025. 

According to the SEC website, Darnell worked for Banker’s Life for seven years while also doing deals with the Frosts. He has three customer disputes alleging “unsuitable recommendations, alleges breach of fiduciary duty, negligence, misrepresentation, and selling away related to an alleged Ponzi scheme with First Liberty Building & Loan, LLC.”

Federal regulators have accused Brant Frost IV of operating First Liberty as a Ponzi scheme. Frost V worked for the company before its collapse.

In December 2025, The Citizen reported that Frost entered the insurance industry and began using the name “E.B. Frost” professionally following the collapse of First Liberty.

Lou said those connections make the loss harder to understand.

“I just can’t understand with somebody with an educated background that was out selling,” she said. “I think only he cared about what he was getting in return.”

She said she does not believe those involved should continue working in financial services.

“They don’t need a license in the state of Georgia at all for anything,” Lou said.

“I don’t understand how they can even sleep at night,” she added. “How they can face the daylight.”

For Lou, the loss is the money she spent decades saving as a widow and single mother — and she has nothing left to fall back on.

“We thought this was safe,” she said. “Because he told us it was. You would get our money back in 30 days, no problem.”Fellow First Liberty victim James McMaster has begun connecting investors affected by the collapse and is hosting a March 7 meeting to help victims gather and discuss possible next steps. The Citizen previously reported on McMaster’s effort to bring investors together “to gather, speak with one voice,” as the case continues to move through federal court.