Brant Frost IV’s Wife Challenges Federal Effort to Seize LLC Assets

Krista Frost, the wife of Edwin Brant Frost IV, is fighting a federal effort to place one of her companies and its assets into receivership as investigators continue attempting to recover money tied to the alleged $155 million First Liberty Ponzi scheme.

In filings submitted Tuesday in U.S. District Court for the Northern District of Georgia, attorneys for Krista Frost and Family Financial Partners LLC asked the court to allow them to intervene in the ongoing SEC case and reconsider a previous order that expanded the receivership to include the company and its holdings.

Newnan-based First Liberty Building & Loan collapsed in the middle of last year and was later identified by federal investigators as a Ponzi scheme that allegedly bilked approximately 300 investors out of roughly $155 million. In addition to the federal wire fraud charge Brant Frost IV recently pleaded guilty to, Georgia Secretary of State Brad Raffensperger’s office previously announced administrative penalties against Brant Frost V, Timothy Nathaniel Darnell, and Fayette County Board of Education member Randy Hough. All three were fined $500,000 in connection with the state investigation.

According to the motion, the court had already granted a request from the court-appointed receiver to place Family Financial Partners LLC into receivership before Krista Frost’s attorneys formally responded.

Her attorneys argue the company and its assets should not be swept into the receivership because they were acquired legitimately and are separate from the First Liberty fraud allegations.

“The money was ‘clean’ money and is therefore not subject to the Receivership proceedings,” attorney Donald Samuel wrote in the filing.

The motion repeatedly identifies Krista Frost as the “sole member and manager” of Family Financial Partners LLC.

The filing also disputes the receiver’s claim that assets held by the company were derived from entities already under federal control, including The Liberty Group. Attorneys for Krista Frost argue the company provided valid “consideration” for assets it purchased, including disputed stock holdings.

One of the most notable references in the filing involves stock in Old Glory Bank, a conservative-leaning financial institution that has attracted national political attention in recent years. Attorneys for Krista Frost argue the receiver overstated the urgency surrounding the stock because it allegedly cannot be sold until at least early 2027 due to a lock-up agreement.

The filing further claims the receiver failed to properly notify Krista Frost or Family Financial Partners before seeking to expand the receivership. Attorneys also argue Edwin Brant Frost IV was never personally served notice related to that motion.

The court filings do not accuse Krista Frost of criminal wrongdoing. Instead, they focus on whether assets tied to Family Financial Partners can legally be considered part of the broader First Liberty receivership estate intended to compensate investors.

The Citizen previously reported that much of the Frost family’s real estate holdings appeared to be titled in Krista Frost’s name rather than Brant Frost IV’s.

Federal receiverships are commonly used in fraud cases to preserve and recover assets for alleged victims while litigation proceeds. In this case, the SEC receiver has been attempting to identify and secure assets connected to First Liberty and affiliated entities.

Krista Frost’s attorneys are now asking the court to set aside the receivership expansion order as it applies to Family Financial Partners and give them 30 days to formally challenge the seizure effort.