First Liberty Founder Brant Frost IV Pleads Guilty in Federal Fraud Case

NEWNAN, Ga. — First Liberty Building & Loan founder Brant Frost IV pleaded guilty Tuesday to a federal wire fraud charge tied to what prosecutors described as a $140 million Ponzi scheme that affected investors across Georgia and beyond.

Frost entered the plea in federal court in Atlanta. He is scheduled to be sentenced August 14.

Federal prosecutors alleged Frost used investor funds to operate a scheme in which new investor money was used to pay earlier investors while concealing major financial losses inside the company. Authorities said the scheme collapsed in 2024, triggering investigations by the FBI, the Securities and Exchange Commission, and the Georgia Secretary of State’s office.

According to the Associated Press, prosecutors said Frost raised approximately $156 million through First Liberty while promising investors returns as high as 18% annually. Although some investors were repaid, federal authorities estimate losses exceeded $65 million. 

U.S. Attorney Theodore S. Hertzberg said prosecutors intend to seek a substantial prison sentence because of the scale of the losses.

“The loss here is very significant,” Hertzberg told the Associated Press. 

Federal authorities alleged Frost diverted millions of dollars for personal spending, including jewelry purchases, luxury vacations, credit card bills, and political donations. In an earlier article, investigators said Frost spent more than $140,000 on jewelry, more than $230,000 renting a vacation home in Kennebunkport, Maine, and more than $2 million on credit card expenses. 

First Liberty marketed itself as a lender providing high-interest “bridge loans” to businesses. The company promoted investment opportunities heavily within conservative media circles, including advertisements on programs hosted by Erick Erickson, Hugh Hewitt, and the late Charlie Kirk.

The federal wire fraud charge carries a potential sentence of up to 20 years in prison. Prosecutors indicated additional charges against others connected to the company remain possible.