This browser does not support the Video element.
Hundreds of victims sought in $140M Georgia scam
Dozens of Georgia investors are set to recover millions of dollars lost in a massive Ponzi scheme, state officials announced Wednesday at the Capitol.
ATLANTA - Dozens of Georgia investors are set to recover millions of dollars lost in a massive Ponzi scheme, state officials announced Wednesday at the Capitol.
What we know:
During a news conference, Secretary of State Brad Raffensperger said 46 investors may be repaid through a deal with a financial services company. The victims were reportedly directed into the scheme by a former advisor.
The case centers on the alleged First Liberty Building and Loan scheme, which investigators believe cost Georgians at least $140 million. Officials say the operation was led by Edwin Brant Frost IV, who is also under federal investigation.
State officials said enforcement actions have already been taken against several individuals connected to the case, including issuing emergency orders and civil penalties.
Authorities say the impact goes far beyond financial losses, with many victims — including seniors — losing their life savings. So far, about 150 victims have come forward, but officials believe the total number could be closer to 300.
What they're saying:
"It was heartbreaking to hear their stories, many of them seniors who saw their life savings taken from them by people they thought they could trust," Raffensperger said.
James McMaster, who says he lost more than $1 million, expressed doubt about his own recovery.
"I hope I get some money back, but, it would probably be beneficial to my heirs. If I don't see it, maybe they'll see it," McMaster said.
He noted that many victims are hesitant to come forward.
"I think a lot of it is, they're embarrassed that they got scammed," McMaster added.
The backstory:
The investments were frequently promoted on conservative and faith-based media platforms to build trust with victims.
Special Investigative Agent Jason Doss said Ponzi schemes are "always starving for new cash" and investigators are working backwards to find those who "helped feed that machine."
Financial impact of First Liberty scheme
State regulators fined three individuals $500,000 each, including Darnell and Frost's son. State regulators have referred the case for possible criminal charges.
Investigators are urging any additional victims to contact the Secretary of State’s office to report their losses.
What's next:
Investigators are urging anyone who believes they were affected to come forward as efforts continue to recover funds and hold those responsible accountable.
PREVIOUS STORIES
- Secretary of State fines Edwin Brant Frost V: $140M Ponzi scheme probe expands
- Probe launched into borrowers linked to $140M First Liberty Ponzi scheme
- Florida man sentenced in Georgia’s largest Ponzi scheme stealing $380M from thousands
- Former Drive Planning executive pleads guilty in $4.1M Ponzi scheme
- First Liberty Building & Loan Ponzi scheme: Records in 'shambles'
- First Liberty Building & Loan Ponzi scheme: Receiver reports records in 'shambles'