ATLANTA – The Georgia Secretary of State’s workplace has formally opened an investigation into an organization linked to the alleged First Liberty Ponzi scheme.
Firm tied to First Liberty Ponzi scheme
What we all know:
The state’s Securities Division introduced on Wednesday it’s investigating International Onboard Companions, LLC and its principal, Kirk Adams. Adams and his firm have been recognized by investigators as borrowers and guarantors of First Liberty, a agency already on the heart of a significant monetary scandal.
In accordance to paperwork filed by the court-appointed receiver for First Liberty, International Onboard Companions borrowed roughly $350,000 from the agency in December 2020.
State officials mentioned that in the identical interval they obtained the mortgage, Adams and International Onboard Companions solicited different investments by promising returns. Nonetheless, these investments weren’t registered as securities, and neither the corporate nor Adams is licensed to promote securities underneath the Georgia Uniform Securities Act of 2008.
‘They’ve suffered a complete loss’
What they’re saying:
The Secretary of State’s workplace reported that preliminary interviews with shoppers counsel these investments have failed to carry out as promised, main some to concern “they’ve suffered a complete loss.”
“The workforce is investigating whether or not there’s any overlap between the traders in International Onboard Companions, LLC and First Liberty in addition to whether or not International Onboard Companions, LLC and First Liberty are associated schemes,” the company said. Investigators are additionally reviewing different First Liberty borrowers to decide in the event that they have been “official borrowers or a part of the First Liberty Ponzi scheme.”
International Onboard Companions probe
What’s subsequent:
Authorities have already taken the next steps:
- Recognized and commenced contacting roughly 40 traders in International Onboard Companions.
- Despatched preservation letters to a number of First Liberty borrowers, warning them not to destroy paperwork or communications.
- Issued subpoenas looking for data on loans and connections to First Liberty founder Edwin Brant Frost IV.
Reporting fraud
What you are able to do:
State officials say they stays involved that International Onboard Companions “could also be a fraudulent funding scheme that’s nonetheless ongoing.” Any people who invested in International Onboard Companions or different entities tied to First Liberty are urged to contact the Securities Division at 470-312-2640 or file a criticism on-line.
First Liberty Constructing & Mortgage probe
The backstory:
Final summer season, a federal investigation into a Newnan-based monetary agency was launched, sending shockwaves via Georgia’s political and monetary sectors. In accordance to federal paperwork, the probe revealed a $140 million Ponzi scheme that left tons of of traders in monetary spoil and triggered a wave of political fallout.
The Securities and Alternate Fee alleges that First Liberty Constructing & Mortgage, led by Edwin Brant Frost IV, defrauded roughly 300 traders by promising secure, high-yield returns via bridge loans to small companies. As an alternative, investigators say the agency operated as a traditional Ponzi scheme, utilizing new investor cash to repay older ones whereas funneling tens of millions to the Frost household and varied political causes.
The controversy has hit the Georgia Republican Occasion notably exhausting. Brant Frost V, the founder’s son and a distinguished GOP determine, resigned from his management positions as scrutiny intensified over greater than $570,000 in political contributions linked to the agency within the probe.
As a court-appointed receiver makes an attempt to untangle the agency’s funds, they’ve described the corporate’s information as being in complete disarray, complicating efforts to get better funds for victims, lots of whom are retirees who misplaced their life financial savings.
First Liberty Constructing and Mortgage in Newnan, Georgia. (FOX 5)
How the scandal unfolded
Timeline:
June 2025 – First Liberty notifies its traders that it’s halting all mortgage actions and can not pay out curiosity or principal, citing monetary difficulties.
July 10, 2025 – The SEC officially files a civil complaint against First Liberty Building & Loan and its founder, Edwin Brant Frost IV. The company alleges the agency orchestrated a $140 million Ponzi scheme and misled traders concerning the dangers and use of their funds.
July 11, 2025 – The SEC strikes to freeze the agency’s belongings. Particulars emerge that $5 million in investor funds have been diverted for the private use of the Frost household, whereas over half one million {dollars} went towards political contributions.
July 14, 2025 – The Georgia Secretary of State broadcasts a state-level investigation into the agency and urges political campaigns to return any cash obtained from First Liberty or the Frost household to make sure the funds will be returned to victims.
July 16, 2025 – Internal pressure grows within the Georgia GOP. Republican Nationwide Committeewoman Amy Kremer publicly requires the elimination of Frost relations from their roles throughout the state celebration.
July 23, 2025 – The court-appointed receiver overseeing First Liberty’s assets stories that the agency’s monetary information are in “shambles.” The dearth of group makes it troublesome for investigators to observe the movement of cash and decide how a lot will be recovered for the 300 defrauded traders.
July 25, 2025 – U.S. Rep. David Scott criticizes the SEC for its oversight, questioning how a scheme of this magnitude might function for years with out detection by federal regulators.
July 30, 2025 – The Georgia Government Transparency and Campaign Finance Commission files a proper ethics criticism in opposition to the Georgia Republican Meeting PAC concerning its hyperlinks to the scheme’s funds.
August 1, 2025 – Brant Frost V resigns from the Georgia Republican State Committee and broadcasts plans to step down because the Coweta County Republican Occasion chairman. GOP officials state the resignations are voluntary and supposed to enable Frost to give attention to his household.
The Supply: The main points on this article come from the Georgia Secretary of State’s Workplace. Earlier FOX 5 Atlanta reporting was additionally used.
