New Georgia Law May Help First Liberty Victims Recover Losses

A newly signed Georgia law could allow victims of the First Liberty fraud case to recover some of their losses, including fines already levied against individuals tied to the Newnan-based company.

Gov. Brian Kemp signed Senate Bill 284 into law on Thursday, expanding the authority of Secretary of State Brad Raffensperger to direct recovered funds back to victims of financial fraud.

“Thank you Governor Kemp for signing this important piece of legislation into law,” Raffensperger said. “Scammers will now face greater obstacles when they try to con hardworking Georgians out of their money.”

What the law changes

Previously, the Secretary of State’s office could issue fines and penalties in securities fraud cases, but those funds were paid to the state.

Under the new law, the Secretary — acting as Securities Commissioner — can now order that recovered funds be repaid directly to investors who were harmed.

“Our priority is clear: protecting the hard-earned assets of Georgia investors,” Raffensperger said. “This law provides the teeth we need to demand justice and ensures that those who seek to defraud our citizens will face the full weight of the law.”

The change takes effect immediately.

What this means for First Liberty investors

The law could have direct implications for victims of the First Liberty case, where state regulators have already taken action against several individuals connected to the company.

Among them:

• Fayette County Board of Education member Randy Hough
• Edwin Brant Frost V, a former First Liberty employee and son of Founder Edwin Brant Frost IV
• Timothy Nathaniel Darnell, who sold First Liberty investments while affiliated with Bankers Life

Each has been fined $500,000 by the Georgia Secretary of State’s office in connection with the broader investigation.

Under the previous law, those fines would have been paid to the state. Under Senate Bill 284, those funds may now be eligible to go directly to investors who lost money.

Limits and next steps

The law does not guarantee repayment, and any recovery will depend on whether funds can be collected and distributed through enforcement actions.

However, it creates a new pathway that did not previously exist for victims seeking financial recovery.

The change comes as federal prosecutors pursue criminal charges against First Liberty founder Edwin Brant Frost IV, who is accused of orchestrating a Ponzi scheme now estimated at more than $155 million.

For many investors, the law represents a potential shift — from penalties paid to the state, to the possibility of funds being returned to those who lost them.

Whether and how quickly that recovery happens will depend on the outcome of ongoing investigations and enforcement efforts.