Georgia Secretary of State Brad Raffensperger has launched an investigation into a company accused of operating a Ponzi scheme that bilked investors while funding political campaigns.
The announcement follows a lawsuit filed in mid-July by the U.S. Securities and Exchange Commission (SEC) against Edwin Brant Frost IV and his company First Liberty Building and Loan. The agency’s Securities Division regulates the securities industry in Georgia, including investment products. Raffensperger has already called on politicians to return any campaign contributions from First Liberty or the Frost family, which has been active in state Republican politics. The Georgia Republican Party said last week that it had repaid nearly $37,000 in such income to the court-appointed receiver for First Liberty.
As part of that investigation, the securities division is reaching out to potential victims in the case. Anyone who may have invested money with First Liberty and believes that they may be affected is asked to contact the office.
“We are committed to protecting Georgians who may have been misled. Our division works tirelessly to ensure transparency and accountability in the securities marketplace,” said Secretary of State Brad Raffensperger. “Public input is vital to that mission.”
In a statement issued by the office, Raffensperger said that if you engaged with First Liberty and have not yet submitted a formal complaint with the Securities Division, you are encouraged to do so using the appropriate channels on the Secretary of State’s website.
Individuals who contact the office will be treated confidentially.
The Securities Division is responsible for regulating the securities industry in Georgia, including the investment products offered to residents, the firms and professionals who sell them, and the businesses that solicit funds from the public for investment purposes.
