NEWNAN, Ga. — The former president of a now-closed Newnan company has been federally charged for his role in an alleged $140 million Ponzi scheme.
Channel 2 Consumer Investigator Justin Gray has been following the case against First Liberty Building and Loan for months.
On Thursday, the U.S. Department of Justice announced that Edwin Brant Frost IV, 68, was arraigned on wire fraud charge.
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Federal prosecutors say that between 2021 and July 2025, Frost told clients that if they invest in short-term small business loans to assist businesses in immediate need, they would receive returns between 8% and 18%.
Instead, they say Frost used their money to pay previous investors and fund more than $5 million in personal expenses, including:
- $230,000 to rent a vacation home in Maine
- $140,000 for jewelry
- $20,800 for a Patek Philippe watch
- $2 million on credit card bills
- $570,00 for political contributions
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Overall, they say Frost raised $140 million from at least 300 investors.
“Frost abused the trust of his clients, family, and friends by allegedly soliciting investors with promises of sizable returns, while knowing the money raised would instead be used for his personal expenses and to pay early investors to maintain the illusion of profits,” said U.S. Attorney Theodore S. Hertzberg.
After his arraignment, Frost was released on bail. His next court date has not yet been announced.
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