Georgia fines former First Liberty principal as part of alleged $140 million Ponzi investigation

First Liberty Building and Loan the day after the Securities and Exchange Commission filed its complaint against the Newnan-based lender. Jill Nolin/Georgia Recorder

The Secretary of State’s Officer has ordered a former principal of the now-defunct lending firm First Liberty Building and Loan to pay a $500,000 fine for alleged investment fraud.

In an order filed Wednesday, Brant Frost V is accused of selling securities and offering investment advice to First Liberty investors without being licensed to do either, and providing false information to investors about their potential returns.

The secretary of state’s office regulates Georgia’s securities market.

He’s also been referred to the Coweta County District Attorney’s office for potential criminal charges and to the insurance commissioner’s office for review of his insurance agent license. The order also bars Frost from working as a broker or investment adviser.

In an email, Frost’s attorney, Christopher Huber, said the accusations are without merit.

“Mr. Frost denies the allegations,” Huber wrote. “The Secretary of State did not provide him an opportunity to address his baseless accusations before rushing to judgment and to the press. We will

continue to defend Mr. Frost.”

First Liberty was based in Newnan and had deep ties to conservative politicians and causes in Georgia and beyond.

Last year, federal officials filed a lawsuit accusing First Liberty’s founder and Frost V’s father, Brant Frost IV, of a Ponzi scheme defrauding 300 investors out of at least $140 million. The company allegedly targeted right-wing and evangelical Christian groups with promises that their money would be used to help promote causes like serving the needy and building new churches.

But the feds said Frost IV spent investor money on jewelry, a vacation home and other luxuries.

A special receiver appointed by the court has recovered about $3.5 million of the lost assets, according to a January report.

Georgia Recorder reporter Alander Rocha contributed to this report.