Florida Investors Reportedly Among Those Affected By Georgia-Based Ponzi Scheme
On July 10th, 2025, the Securities and Exchange Commission (SEC) announced securities fraud charges against First Liberty Building & Loan, LLC and its founder and owner Edwin Brant Frost. The company is believed to be a $140 million Ponzi scheme. Notably, Florida investors are among those who were affected. Here, our Miami Ponzi scheme attorney provides a comprehensive overview of the case.
Ponzi Scheme Allegations: First Liberty Building & Loan, LLC
The SEC reportedly uncovered a major Ponzi scheme that is based on Georgia and that affected several hundred investors nationwide, mostly across the Southeastern United States. From 2014 through June 2025, First Liberty Building & Loan, LLC and its owner Edwin Brant Frost reportedly raised at least $140 million from roughly 300 investors. The investment entity sold promissory notes and loan-participation agreements. It promised a virtually guaranteed return of “up to 18 percent” by purportedly funding short-term bridge loans to businesses.
However, as with all Ponzi schemes, the reality was far different than the promise. While some of these loans were real (especially in the beginning), the loans generally did not deliver on the promised returns. By 2021, the SEC alleges First Liberty had turned into a classic Ponzi scheme, using money from new investors to pay earlier participants. According to the SEC, Mr. Frost diverted more than $3 million of investor funds for personal use, including paying down credit card debt, funding lavish vacations, and paying other bills.
The SEC has Taken Emergency Action to Protect Investors
In July of 2025, the SEC filed suit in the United States District Court for the Northern District of Georgia, seeking an asset freeze, receivership, and expedited discovery. After the filing, the federal court immediately ordered those measures. Mr. Frost denied any wrongdoing, but consented to the emergency measures. Since First Liberty Building & Loan, LLC collapsed on June 27th of 2025, a court-appointed receiver has confirmed that the investment entity’s finances are a mess. A large share of investor money is still missing.
All Ponzi Schemes Will Collapse Under their Fraud
All Ponzi schemes are built on deception and are inherently unsustainable. They rely on a continuous influx of new investor money to pay returns to earlier investors. In other words, they shuffle money around instead of generating legitimate profits. Eventually, the flow of new investments slows or stops, and the scheme collapses under its own weight. That is an inevitable result. When that happens, the fraud is exposed. Sadly, many investors will be left with devastating losses. In the case of First Liberty and Edwin Brant Frost, the business could no longer conceal its insolvency once it stopped attracting new capital. The collapse reveals what was always true: there were no sustainable returns, only a financial illusion created by the fraudster.
Consult With Our Miami Ponzi Scheme Lawyer Today
At Carlson & Associates, P.A., our Miami securities fraud attorney has the knowledge, skills, and experience to take on the full range of Ponzi scheme cases. If you have any questions or concerns about losses sustained in a Ponzi scheme, we are here to help. Contact us today for your fully confidential consultation. Our firm represents investors in Florida and beyond.
Source:
sec.gov/newsroom/press-releases/2025-98-sec-charges-georgia-based-first-liberty-building-loan-its-owner-operating-140-million-ponzi-scheme
