CEDARTOWN, Ga. — A federal receiver is actively seeking to recover $140 million lost in an alleged Ponzi scheme linked to high-profile Republican figures in Georgia and Alabama. The receiver is focused on clawing back nearly 1,000 political donations that exceed $1 million, which predominantly supported far-right Republican candidates.
Some politicians involved have claimed to have suffered financial losses as well, but many of the affected investors are rank-and-file conservatives. They were drawn in by conservative talk show hosts who marketed the investment opportunity as one for Christians and ‘America First MAGA patriots.’
Michael Tinney, a 59-year-old real estate broker from Cedartown, shared his experience of investing $600,000 after hearing about First Liberty Building & Loan on shows hosted by conservative commentators like Erick Erickson, Hugh Hewitt, and Charlie Kirk.
First Liberty had promised investors returns of up to 16% by facilitating high-interest loans to businesses. Brant Frost IV, an evangelical figure, promoted the scheme as offering ‘Wall Street returns for Main Street investors.’ However, a lawsuit filed by the U.S. Securities and Exchange Commission alleges that Frost took $17 million for himself, his relatives, and affiliated companies, alongside loaning millions more that borrowers failed to repay.
Representatives for the Frost family have stated that the investor base includes retired teachers, businessmen, ministers, and various professionals. Brant Frost V mentioned in 2024 that Tinney was approached in person by his father to secure the investment.
Recently, a report by court-appointed receiver S. Gregory Hays revealed that the remaining assets consist of just $1.2 million in cash, along with some real estate belonging to the Frost family. Hays has conveyed that it is still too early to determine how much can be recovered but is taking steps to foreclose on collateral from defaulting borrowers, which includes a bankrupt factory in South Carolina.
Furthermore, Hays has seized Brant Frost IV’s Aston Martin sports car, which he intends to auction. Investors have expressed anger over the ostentatious purchase, particularly in light of their financial losses.
Hays has cautioned that substantial losses are likely for the investors involved in the scheme, indicating that recovery efforts may fall short.
In light of these events, Georgia Secretary of State Brad Raffensperger has urged politicians to return campaign contributions received from the Frosts. Hays noted that to date, he has successfully recovered $110,000 along with a $20,000 charitable donation.
Brant Frost IV, on July 11, acknowledged his role in the situation, expressing a commitment to do everything possible to repay those he misled.
Despite this, criminal charges against the Frosts have yet to be announced, and a number of Frost relatives continue to hold significant positions within the Georgia Republican Party—political figures that have benefitted financially from associated donations.
Josh McKoon, the chairman of the Georgia Republican Party, noted that his organization returned nearly $37,000 in donations from the Frosts, expressing deep sadness for the losses incurred by members of the conservative movement.
Campaign records indicate contributions from First Liberty, the Frost family, and their associated companies totaled more than $700,000 in Georgia, $150,000 in Alabama, and nearly $140,000 in Maine, where they also spent $230,000 on rental properties in Kennebunkport over the years.
Among these donations were $1,000 to former party chairman David Shafer’s unsuccessful lieutenant governor campaign in 2018 and substantial sums to the state party. Shafer has been implicated in efforts to overturn President Donald Trump’s 2020 electoral defeat in Georgia.
According to a July 10 lawsuit, a company managed by Shafer, Springwood Capital, alleged a loss of $200,000 invested in First Liberty. The company’s attorney, Brent Herrin, mentioned that it is one of numerous investors affected by the scheme.
While McKoon, who also received $4,500 in donations from the Frosts, claims not to have lost any money, Salleigh Grubbs, Georgia GOP first vice-chairman, acknowledged on a radio show that many Republican members were significantly invested.
In Alabama, Republican state Auditor Andrew Sorrell stated that both he and a political action committee he oversees suffered financial setbacks. While he has not disclosed his personal losses, records indicate that the Alabama Christian Citizens PAC invested $29,000 in the company.
Sorrell remarked that the investment had been marketed through conservative media as a ‘patriotic’ and ‘Christian’ opportunity, admitting he learned a ‘tough lesson.’ Despite this, he has also benefited, having received $55,000 in campaign donations, with both Alabama Christian Citizens and Sorrell’s federal-level U.S. Christian Citizens PAC receiving $12,500.
Erickson, a radio host based in Atlanta, formerly recommended the Frosts to his audience, identifying them as ‘wonderful people’ who were active in conservative politics.
Tinney, one of the investors, criticized the endorsements from conservative media, calling them a ‘recipe for disaster,’ and is still awaiting any form of apology from those involved.
In contrast, Fredericks, another radio host who previously endorsed the Frosts, acknowledged the severity of the SEC complaint during a show, expressing shock at the developments.
In a recent ethical breach complaint filed with the Georgia Ethics Commission, Brant Frost V has been accused of inappropriately influencing elections. Following this, he decided to resign from the state Republican committee and his position as Coweta County GOP chairman.
Meanwhile, Krista Frost, the wife of Brant Frost IV, remains on the state committee, as does Brant Frost V’s sister, Katie Frost, who is chair of the 3rd Congressional District GOP.
Despite internal challenges, McKoon and supporters won party elections in June, a process that a rival has contested, alleging political misconduct involving the Frosts.
Amy Kremer, a Georgia Republican National Committeewoman, has called for the removal of the Frosts from their positions, emphasizing the party’s commitment to uphold law and order.
In light of the ongoing circumstances, Tinney summarized his perspective, stating, ‘My goal is justice at this point.’
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