$6.7M Deal Will Make Some First Liberty Ponzi Scheme Victims Whole

Dozens of Georgians who lost money in the First Liberty Building and Loan Ponzi scheme will be made whole through a $6.7 million agreement announced Wednesday by Secretary of State Brad Raffensperger.

The agreement with Bankers Life Advisory Services and Bankers Life Securities will repay 46 investors who were directed into First Liberty investments by former financial advisor Timothy Nathaniel Darnell while he was employed with the company. State officials said those investors represent roughly one-third of the victims who came forward.

“I want to sincerely thank Bankers Life for acting with integrity,” Raffensperger said. “They chose to do the right thing and help the Georgians who lost everything in this alleged Ponzi scheme orchestrated by First Liberty.”

How the agreement came together

According to Noula Zaharis, Assistant Commissioner of Securities for the Georgia Secretary of State’s Office, the agreement grew out of the state’s broader investigation into First Liberty and the role of individuals connected to the scheme.

As part of that work, the Securities Division reviewed activity involving Darnell and his interactions with investors while affiliated with Bankers Life.

“The people in the settlement — Nathaniel Darnell recommended them to go to First Liberty while he was employed with Bankers Life — they’re taking care of those individuals,” Zaharis said.

The state and the company independently identified the same group of affected investors, ultimately agreeing to include all of them in the repayment plan.

Zaharis said she was “pleasantly surprised” that Bankers Life also chose to include a small number of Darnell’s First Liberty investors who did not have direct financial ties to Bankers Life.

She added that the company’s decision demonstrates its commitment to its customers.

“Bankers Life demonstrated that they will stand behind their customers when they need it,” Zaharis said.

Bankers Life President Cheryl Heilman said the company’s decision was rooted in that responsibility, even as it emphasized Darnell’s actions were not authorized.

“While Timothy Nathaniel Darnell acted independently without Bankers Life’s knowledge or authorization, our clients come first — and that’s why we agreed to make a monetary contribution to this fund,” Heilman said.

The agreement with Bankers Life was made possible through negotiations with Special Investigative Agent Jason Doss, the Secretary of State’s Office Securities Division, and attorneys Alston & Bird. 

What “made whole” means

Officials emphasized that victims will be restored financially, but not profit from the fraudulent investment.

“You’re not going to make money off of it, but you’re not going to lose your money,” Zaharis said.

Payments will return investors’ principal, minus any funds they may have already received during the course of the scheme.

A victim sees relief

One of those investors is a widow previously identified by The Citizen as “Lou,” who lost $50,000 — her entire life savings — after trusting Darnell.

After learning of the agreement, she said the news brought relief she did not expect.

“It’s a blessing,” Lou said. “I’m just so thankful that they stepped up and helped us on that.”

Lou also expressed appreciation for both the Secretary of State’s office and Bankers Life, while acknowledging the broader impact of the situation.

“I’m sorry for Bankers Life that it had to happen to them and it had to happen to us,” she said. “But I am so glad that they came forward and came through.”

For Lou, the repayment represents a turning point after months of uncertainty.

“This is a blessing — a total blessing,” she said.

Accountability and next steps

The Secretary of State’s Securities Division previously issued emergency orders carrying $500,000 civil penalties against three individuals connected to the Newnan-based First Liberty Building and Loan: Timothy Nathaniel Darnell, Fayette County Board of Education member Randy Hough, and former Coweta County GOP Chair Brant Frost V. All three were referred for criminal prosecution. 

Those penalties are part of a broader enforcement effort tied to what investigators now say is a $155 million Ponzi scheme.

Zaharis said recent legislation passed by the Georgia General Assembly — Senate Bill 284 — will allow funds collected through such penalties to be directed back to victims.

State officials say they hope the Bankers Life agreement is the first of several efforts to recover losses for investors.

“Do the right thing,” Raffensperger said. “Let’s work together to get these hardworking Georgians their money back.”