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Victims of the First Liberty Ponzi scheme can now begin the formal process of claiming money from the court-appointed receiver, following an October 27 federal court order establishing how investors’ losses will be calculated and how recovered funds may eventually be distributed.
U.S. District Judge Michael L. Brown approved the claims process for First Liberty Building and Loan and related companies, giving investors and other eligible creditors 60 days from the date of the order to submit their claims.
The calculated filing deadline is December 26, 2026.
The order provides the first detailed procedure for the more than 300 victims identified by federal prosecutors to establish how much money they lost and seek repayment from funds recovered during the receivership.
It does not establish how much each investor will receive or when payments will begin.
The development comes one day after Edwin Brant Frost IV was sentenced to 15 years in federal prison and ordered to pay $76,454,374.39 in restitution.
The criminal restitution order and the receiver’s claims process are separate legal procedures. The new claims process concerns assets recovered through the federal civil receivership.
How investors can file a claim
Court-appointed receiver S. Gregory Hays is required to send information about the claims process to known potential claimants within 10 days of the October 27 order.
Those notices will be sent by first-class mail to the last known address of each potential claimant.
Known investors will receive a claim form containing their identifying information and, when sufficient records are available, the receiver’s calculation of their losses.
Investors should review that information carefully before returning the required form.
The completed claim must be submitted directly to the receiver, not to the federal court.
Claims may be submitted by mail to:
S. Gregory Hays, Receiver
Suite 555
2964 Peachtree Road NW
Atlanta, GA 30305
Claims may also be submitted by email to [email protected].
The court order requires the receiver to confirm receipt of submitted claims.
For mailed claims, the order specifies trackable physical mail delivery with a postmark by the deadline.
For emailed claims, the order requires confirmation of receipt from the receiver by the deadline.
Investors should retain copies of their claim forms, supporting documents, and delivery confirmations.
The receiver is also required to post the notice, court order, and related claims information on the receivership website.
How much money can victims claim?
One of the most important provisions of the order concerns how investors’ losses will be calculated.
The receiver will use a method commonly called money in, money out.
The calculation starts with the total amount an investor paid into First Liberty and subtracts all money that First Liberty or its affiliates returned to that investor.
For example, someone who invested $100,000 and received $15,000 in payments would have a calculated net loss of $85,000, assuming no other accounts or recoveries affect the calculation.
The receiver will not include promised but unpaid interest, profits, or fees in the allowed claim amount.
That distinction could be important for investors who received monthly payments before First Liberty collapsed. Those payments will generally reduce the amount of the principal loss recognized through the claims process, regardless of how First Liberty described them at the time.
The receiver will rely on banking records, forensic accounting, and documentation supplied by investors.
Multiple accounts may be combined
The court has also authorized the receiver to combine multiple accounts associated with the same claimant when calculating losses.
Those accounts may include individual and joint accounts, retirement accounts, trusts, and limited liability companies owned by the investor.
The receiver will calculate the combined amount invested and subtract the combined amount withdrawn.
Investors must also disclose recoveries received from third parties in connection with First Liberty.
Those recoveries may reduce the amount recognized as an eligible claim, preventing the same loss from being reimbursed twice.
In April, The Citizen reported on a $6.7 million settlement involving Bankers Life, which was intended to repay lost principal to 46 investors who had been directed to First Liberty by a former financial advisor.
Investors who have received money through that or another recovery effort must report those payments as required by the court order.
What if an investor disagrees with the receiver?
Investors will have an opportunity to challenge the receiver’s calculations.
Anyone who disputes the amount listed on a prefilled claim form must complete a blank claim form and submit documentation supporting the amount they believe is correct.
Acceptable supporting documents include bank statements, brokerage statements, retirement account statements, wire transfer receipts, and canceled checks.
The receiver will not rely on documents prepared by First Liberty or Brant Frost IV to calculate an investor’s loss.
If the receiver rejects a claim, either entirely or in part, the claimant will receive a written determination explaining the decision.
Claimants will then have 20 days after the receiver sends that determination to appeal to the federal court.
Investors who do not have sufficient records may need to gather documentation before submitting their claims.
Who is eligible?
The court-approved process allows claims from investors and creditors who can establish qualifying losses or unpaid obligations to First Liberty.
However, the order includes restrictions concerning company insiders and people who knowingly participated in or helped promote the fraudulent investment scheme.
The receiver may investigate those relationships and disallow claims based on the circumstances.
The order also allows the receiver to review claims from agents who invested their own money and suffered losses. Such claims may qualify if the agent satisfies the requirements, including the restrictions concerning insiders and knowledge of the fraud.
Creditors who provided goods, services, or loans must complete claim forms and document unpaid amounts owed to them.
When will investors receive money?
The October 27 order establishes a schedule for reviewing claims but does not authorize immediate payments.
Under the court’s timetable, the receiver is expected to make claim determinations approximately 90 days after the order.
Claimants will have an opportunity to appeal adverse determinations.
After those disputes have been resolved, the receiver must submit a proposed distribution plan to the court identifying eligible claimants and the amounts proposed for an initial payment.
The judge must approve that plan before distributions can proceed.
The amount available for repayment will depend on how much money the receiver can recover, the claims ultimately approved, and other expenses and obligations of the receivership.
There is no guaranteed percentage of repayment in the new order.
That means an investor whose net loss is approved for $100,000 should not assume that a check for $100,000 will follow.
Other efforts to recover money for victims
Hays has been identifying and attempting to recover assets associated with First Liberty since the receivership began in July 2025.
The effort includes properties, business interests, financial accounts, and other assets associated with the companies involved in the scheme.
In a separate October 27 filing, the receiver reported an agreement with Krista Frost, wife of Brant Frost IV, concerning Family Financial Partners LLC and its holdings in Old Glory Bank.
The proposed agreement could bring additional assets into the receivership, although the value of those holdings and a dispute involving certain founder’s shares remain unresolved.
Separately, the Securities & Charities Division of the Georgia Secretary of State’s Office, under the leadership of Assistant Commissioner of Securities Noula Zaharis, is pursuing civil penalties against other individuals implicated in the First Liberty investigation.
The office has issued three $500,000 civil penalties, totaling $1.5 million, against Brant Frost V, Randy Hough, and Timothy Nathaniel Darnell. Their cases were also referred for possible criminal prosecution.
Those penalties have been imposed through state administrative enforcement proceedings, but the $1.5 million should not be treated as money already collected or available for distribution.
Zaharis has assured The Citizen that the Secretary of State’s Office is committed to pursuing additional recoveries and working to direct money collected through enforcement efforts to First Liberty victims. The ability to direct penalty proceeds to victims involves separate legal requirements and is not part of the receiver’s newly approved claims process.
Meanwhile, victim advocate Lisa Deveraux, who operates the First Liberty Victims Portal, has said her organization will continue helping victims obtain information and navigate recovery efforts.
In earlier reporting about the portal, The Citizen described how investors were connecting with one another and government agencies while seeking answers about their losses.
For victims who have waited more than a year for a formal path toward repayment, the approved claims process is a significant development.
The immediate priority is to review the notice when it arrives, confirm the receiver’s calculations, and submit the required form before the deadline.
Filing a claim does not guarantee full repayment, but failing to file on time could prevent an investor from receiving any distribution through the receivership.
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