Ponzi Scheme Operator Sentenced to 15 Years

Edwin Brant Frost IV, a businessman from Newnan, Georgia, has been sentenced to 15 years in federal prison for orchestrating a Ponzi scheme that defrauded more than 300 investors out of over $76 million. The sentence was handed down by Chief U.S. District Judge Leigh Martin May, following Frost's conviction for wire fraud on May 12, 2026.

Frost, 69, operated the fraudulent scheme through his company, First Liberty Building and Loan, LLC, from at least 2021 through July 2025. The U. S.

Attorney's Office described Frost as a "false prophet and ravenous wolf in sheep’s clothing," who exploited investors' trust by using religion and politics to lure them into investing. He promised high returns from short-term, high-interest "bridge loans" to small businesses, claiming these would be backed by the Small Business Administration (SBA) and that investors' principal and interest would be repaid through borrowers' refinancing.

However, by 2021, First Liberty was struggling financially, with numerous bridge loans defaulting and borrowers failing to make payments. Despite this, Frost continued to assure investors of the company's success, falsely claiming that their funds were being used as promised and that the loans were performing well. In reality, Frost was using new investors' funds to pay interest owed to existing investors, a hallmark of a Ponzi scheme.

Frost diverted at least $5 million of investor funds for personal luxuries, including a $230,000 vacation home rental in Maine, over $140,000 in jewelry, a $20,800 Patek Philippe watch, more than $335,000 to a rare coin dealer, over $2 million in credit card payments, and more than $570,000 in political contributions.

The case was investigated by the Federal Bureau of Investigation (FBI) and the U. S. Federal Deposit Insurance Corporation-Office of Inspector General (FDIC OIG), with assistance from the Securities and Exchange Commission and the Office of the Georgia Secretary of State.

Special Agent in Charge Marlo Graham of the FBI Atlanta and Special Agent in Charge Kyle A. Myles of the FDIC OIG highlighted the devastating impact of Frost's scheme on investors, many of whom lost their life savings.

In addition to his prison sentence, Frost was ordered to pay restitution totaling $76,454,374.39. Following his release, he will be subject to three years of supervised release. Assistant United States Attorney Angela Adams prosecuted the case, emphasizing the commitment of law enforcement agencies to hold fraudsters accountable and seek justice for victims.