This sketch depicts Edwin Brant Frost IV, who is accused of running a Ponzi scheme, with his attorneys in front of a federal judge in Atlanta on April 23, 2026. (Sketch by Lauren Lacy)
NEWNAN, Ga. - The former president of a defunct Newnan lending company was arraigned Thursday on federal wire fraud charges for allegedly orchestrating a multi-million-dollar Ponzi scheme that defrauded hundreds of investors.
Federal charges in Newnan Ponzi scheme
What we know:
Edwin Brant Frost IV, 68, of Newnan, appeared before a federal magistrate judge to face charges related to his time leading First Liberty Building & Loan LLC. According to U.S. Attorney Theodore S. Hertzberg, Frost convinced at least 300 people to invest $140 million between 2021 and July 2025.
Federal investigators say Frost told investors their money would fund short-term "bridge loans" for small businesses with promised returns of 10% to 18%. Instead, the government claims Frost used money from new investors to pay back older ones while pocketing millions for himself.
Missing details in First Liberty fraud probe
What we don't know:
While the government has identified at least 300 victims, the full list of individuals or specific small businesses impacted by the scheme has not been made public. It is also unclear if any of the $140 million in investor funds has been recovered or frozen by federal authorities.
Allegations of lavish spending on investor dimes
By the numbers:
The indictment alleges that Frost used more than $5 million of investor funds for personal and extravagant expenses, including:
- $2 million on personal credit card bills.
- $570,000 for political contributions.
- $230,000 to rent a vacation home in Maine.
- $140,000 for jewelry.
- $20,800 for a Patek Philippe watch.
This sketch depicts Chief U.S. Magistrate Judge Justin S. Anand during the arraignment of Edwin Brant Frost IV, who is accused of running a Ponzi scheme, at the federal courthouse in Atlanta on April 23, 2026. (Sketch by Lauren Lacy)
First Liberty Building & Loan collapse fallout
The backstory:
What was marketed as a stable investment in the heart of Georgia’s conservative financial circles has unraveled into a $140 million Ponzi scheme, leaving hundreds of victims in its wake and sparking a political firestorm that reached the highest levels of state government. The collapse of First Liberty Building & Loan and its affiliate, Global Onboard Partners, has not only triggered federal enforcement but has also forced a reckoning within the Georgia Republican Party over campaign contributions linked to the alleged fraud.
At the center of the investigation is First Liberty Building & Loan, a Griffin-based firm led by Edwin "Ed" Frost. According to the Securities and Exchange Commission (SEC), the firm promised investors high annual returns, often between 10% and 12%, by claiming their money was backed by real estate and "liquid" assets. However, federal investigators say First Liberty was a classic Ponzi scheme.
Instead of generating profits through legitimate business activities, the firm allegedly used money from new investors to pay interest to older ones. The SEC alleges the firm raised roughly $140 million from at least 200 investors. The investigation expanded to include Global Onboard Partners, a company involving Frost’s son, Brian Frost, creating a bridge between the investment firm and the state’s political elite.
First Liberty Building and Loan in Newnan, Georgia. (FOX 5)
The scandal quickly shifted from a financial crime to a political liability. Records revealed that First Liberty and those associated with it donated heavily to Republican causes and candidates. In the wake of the SEC’s charges, Georgia Secretary of State Brad Raffensperger called on political committees and candidates to return any campaign funds linked to the scheme. The pressure led to a shakeup within the GOP; Brian Frost resigned from his position on the Georgia Republican Executive Committee as scrutiny intensified regarding his family’s business dealings and GOP scrutiny grew. Furthermore, ethics complaints were filed against various Georgia Republican PACs, alleging that the acceptance of these funds violated state standards once the fraudulent nature of the source became public.
For the victims, many of whom are retirees who lost their life savings, the focus has shifted to asset recovery. A court-appointed receiver, tasked with clawing back money to repay investors, has taken control of First Liberty’s remaining assets. In a significant turn for the victims, the receiver indicated that dozens of victims may be able to recover a portion of their losses by targeting "clawback" payments, money that was paid out to early investors or third parties using the fraudulent funds. The receiver is also investigating the sale of high-value assets to replenish the pool of funds for victims. While the legal battles continue, the case remains one of the largest financial scandals in recent Georgia history.
Future court dates for First Liberty president
What's next:
Frost was released on bail following his arraignment. The case is now being prosecuted by Assistant U.S. Attorney Angela Adams. While a trial date has not been set, the FBI and FDIC Office of Inspector General are continuing to investigate the financial records of the now-defunct First Liberty.
The Source: The information in this story was gathered from the U.S. Attorney’s Office for the Northern District of Georgia, which detailed the charges in a press release and court proceedings, as well as statements from the FBI and the FDIC Office of Inspector General. Previous FOX 5 Atlanta reporting was also used.