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Krista Frost, wife of convicted First Liberty Ponzi scheme operator Edwin Brant Frost IV, has agreed to withdraw her objections to placing one of her companies and its assets under the control of the federal receiver working to recover money for victims.
The agreement, filed October 27 in U.S. District Court in Atlanta, could bring substantial holdings in Old Glory Bank into the First Liberty receivership, although a dispute over some of the shares remains unresolved.
The court-appointed receiver, S. Gregory Hays, has asked U.S. District Judge Michael L. Brown to approve the agreement. As filed, the proposed consent order has not yet been signed by the judge.
The development comes one day after Brant Frost IV was sentenced to 15 years in federal prison and ordered to pay $76,454,374.39 in restitution for operating a Ponzi scheme that cost more than 300 investors their money.
Hundreds of thousands of bank shares at issue
The dispute centers on Family Financial Partners LLC, a company controlled by Krista Frost.
According to the proposed consent order, the company holds 742,750 shares in Old Glory Bank, including 100,000 Class B founder’s shares. It also holds a warrant to purchase an additional 50,000 shares.
Old Glory Holding Company, the bank’s parent company, previously offered Class B common shares to investors at $7 each, according to filings with the Securities and Exchange Commission. At that historical offering price, the 742,750 shares held by Family Financial Partners would have a combined indicated value of approximately $5.2 million.
However, that calculation is not a current appraisal. Old Glory Bank is privately held, the economic rights of the founder’s shares are disputed, and the court filing says their value is uncertain.
The bank’s parent company also entered into a proposed $250 million merger transaction earlier this year that could have taken it public on Nasdaq. The transaction was terminated in August 2026, leaving the shares without a publicly traded market price.
Under the agreement, Krista Frost and Family Financial Partners would withdraw their opposition to the company’s inclusion in the receivership.
If the court approves the order, the receiver could seek to sell the bank shares, subject to the notice and court-approval procedures outlined in the agreement.
The parties have agreed to treat the 100,000 founder’s shares differently from the remaining stock.
If those founder’s shares are sold, the receiver must hold the proceeds separately while the court determines whether Krista Frost has a valid claim to them.
The proceeds from selling the company’s other 642,750 shares would not be subject to that special restriction and could be treated as assets of the receivership estate.
If the founder’s shares are sold, Krista Frost would have 20 days after receiving notice to assert her claim to the proceeds. Failing to file a claim within that period would result in forfeiture of her rights under the proposed order.
The agreement does not determine who ultimately owns the disputed proceeds or how much money, if any, the stock could generate for investors.
A reversal from the earlier court fight
In May, The Citizen reported that Krista Frost was fighting the receiver’s attempt to bring Family Financial Partners into the First Liberty receivership.
At that time, her attorneys argued that the company’s assets had been acquired legitimately and should remain separate from funds associated with the fraudulent lending operation.
Her attorneys also challenged the procedures used to expand the receivership.
The court initially included Family Financial Partners in the receivership on May 19 but later set aside that portion of the order while considering the company’s objections.
The parties were scheduled to address the dispute at an October 8 hearing. The receiver’s new filing states that the proposed agreement follows an announcement made in open court that day.
Rather than continuing to contest the inclusion of Family Financial Partners, Krista Frost has now agreed to the expansion while retaining the opportunity to pursue her claim to the founder’s shares.
The filing does not accuse Krista Frost of participating in her husband’s Ponzi scheme, and the proposed agreement does not establish criminal wrongdoing on her part.
The Citizen previously examined property in Krista Frost’s name
Questions about assets held by Krista Frost have been part of the First Liberty story since shortly after the lending company’s collapse.
In July 2025, The Citizen examined Coweta County property records and reported that Brant Frost IV and his wife held more than $1.4 million in local real estate.
Of those properties, only one, valued at $318,600, was listed in Brant Frost IV’s name. The remaining properties were titled in Krista Frost’s name.
Those property records established ownership as recorded at the time. They did not establish that the properties were purchased with investor money or improperly transferred.
The new October 27 agreement concerns Family Financial Partners and its Old Glory Bank holdings. It does not resolve questions about the Frosts’ real estate.
Questions arise over Range Rovers seen around Newnan
The Frost family’s vehicles have also drawn attention during efforts to recover First Liberty assets.
In October 2025, The Citizen reported that three Range Rover Sport vehicles were among the assets taken into the federal receiver’s control. The vehicles included two 2011 models and one 2017 model.
Two independent sources, speaking anonymously to The Citizen, said they have since seen Brant and Krista Frost driving Range Rovers matching the makes and models of vehicles previously taken into the receivership.
Neither source could establish whether the vehicles they observed were the same vehicles sold at auction.
The Citizen also confirmed through a separate source that one buyer of an auctioned Frost Range Rover still has the vehicle in his possession.
The observations raise questions about the vehicles’ current ownership and how they were obtained. There is no evidence establishing that the Frosts repurchased the auctioned vehicles, acquired replacements, or used First Liberty funds to obtain them.
More assets could become available for victims
The receiver has been working to identify, preserve, and recover assets connected to First Liberty since federal regulators took action against the company in July 2025.
Brant Frost IV pleaded guilty to wire fraud in May 2026. Federal prosecutors said he used new investors’ money to pay existing investors while diverting millions for personal expenses and political contributions.
The restitution ordered at his October 26 sentencing does not mean that money is already available to repay victims.
The proposed agreement involving Family Financial Partners represents another potential source of recoverable assets, although the value of the stock and any competing claims must still be addressed.
The next step is for Judge Brown to decide whether to enter the proposed consent order.
If approved, Family Financial Partners would become part of the receivership, and the receiver could proceed under the agreement’s terms while the dispute over the founder’s shares remains open.
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