The Georgia Secretary of State’s Office is fining a prominent Georgia Republican leader for his alleged role in a $140 million Ponzi scheme. He may also face criminal charges.
Channel 2 investigative reporter Justin Gray obtain a copy of the Georgia Secretary of State’s emergency order to fine Nathaniel Darnell $500,000. The office also also refers to Darnell’s case to the Cobb County District Attorney’s Office for possible criminal charges.
“These individuals use their standing in the community to continually commit this affinity fraud with no one off limits, including those who committed their lives to helping others,” Georgia Secretary of State Brad Raffensperger said.
We’re hearing from Georgians who say that lost everything by investing with Darnell, LIVE Channel 2 Action News at 6:00 p.m.
Darnell serves as the President of the Georgia Republican Assembly, an influential conservative group, and worked as a licensed financial advisor and insurance professional, according to his bio. He also had a role with the Cobb County Cobb County Republican Party.
The Secretary of State’s Office accused Darnell of knowingly misleading investors for five years in his job at Bankers Life and Casualty Company to recruit them into First Liberty.
The Newnan-based company and its owners, Brant Frost IV and Brant Frost V, are under investigation from state and federal authorities for violating securities act.
The investigation accuses Darnell of recruiting at least 45 people to invest more than $6.6 million into First Liberty without disclosing to Bankers Life or the investors that he was getting a commission from them.
“The way Mr. Darnell went about recruiting these investors is reprehensible. He exploited their Christian faith. These victims were Christians. And he also then exploited his position as president of the Georgia Republican Assembly to build trust among investors,” Raffensperger said.
Darrell has 30 days to pay half the $500,000 fine or request a hearing. Gray reached out to Darrell’s attorney, Doug Gilfillan, and received the following statement:
“Mr. Darnell denies the allegations in the Emergency Order. Mr. Raffensperger has rushed to judgment and improperly rushed to the press for his own political gains. Although we previously asked the Secretary of State for the chance to discuss this matter before it took any action, the Secretary of State ignored that request and did not provide us an opportunity to address these allegations before making them public. Although we have sympathy for those who lost money, we will continue to defend Mr. Darnell in this matter.”
Anyone who believes they may be victims of a fraudulent investment scheme is encouraged to contact the Secretary of State’s Office.
Complaints can be filed with the Securities Division online or by calling 470-312-2640
RELATED STORIES:
- Ponzi scheme investigation: First Liberty leader fined $500K, referred for possible criminal charges
- Sec. of State investigating borrowers from alleged First Liberty Ponzi scheme
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