First Liberty investigation leads to probe into another Georgia firm
A sweeping investigation into Newnan-based First Liberty Building & Loan for allegedly running a $140 million Ponzi scheme has triggered a second civil investigation by the state into a borrower of the defunct lender.
The Georgia Secretary of State’s office said Wednesday it opened an investigation into Global Onboard Partners and Kirk Adams, who registered the company with an address in Cobb County.
Adams is identified as CEO of Global Onboard Partners in past announcements about the company and its partners, which describe the company as a provider of in-flight advertising products. It’s unclear what the current status is of the business and its operations.
Adams did not immediately respond to multiple requests for comment.
The agency alleges Global Onboard Partners borrowed about $350,000 from First Liberty in December 2020, and Adams guaranteed the loan.
At around the same time, the agency alleges Adams and Global Onboard Partners raised money from investors “by soliciting other investments promising returns,” according to a Secretary of State’s Office investor alert.
Inside the collapse First Liberty Building & Loan
Georgia lender First Liberty Building & Loan is accused of defrauding investors and running a $140 million Ponzi scheme. The Newnan business advertised itself as a patriotic, Christian organization and made large donations to conservative political campaigns.
Politics: Georgia alleges First Liberty-linked PAC illegally influenced elections
Influence: How an alleged Georgia Ponzi scheme fueled far-right causes
Political donations: Who received donations from First Liberty, the Frosts and their companies?
Avoiding scrutiny: First Liberty’s alleged Ponzi scheme took root in Georgia’s regulatory gaps
Nationwide: First Liberty family’s contributions flowed to at least 38 states
Allegations: SEC accuses GOP-linked Georgia lender of $140M Ponzi scheme
The founder: Who is First Liberty founder Brant Frost IV?
Reaction: ‘I’m in shock’: Investors reeling after collapse
Sales pitch: First Liberty sold faith and MAGA loyalty. How conservative media helped
Video: How a faith-based Georgia bank allegedly ran a $140 million Ponzi scheme for years
The investigator: To find First Liberty’s missing money, he’s starting with computers, files
Fallout: As First Liberty empire crumbles, new lawsuit seeks class action status
But the investments were not registered as securities with the state and Global Onboard Partners is not licensed to sell securities, according to the alert. Secretary of State Brad Raffensperger’s office is the state regulator of securities.
And some investors in Global Onboard Partners “fear that they have suffered a total loss,” with investments not performing as promised, the alert says. The total amount of investments in Global Onboard Partners at stake is still under investigation.
The Secretary of State’s office said it is contacting about 40 investors in Global Onboard Partners, and is asking all investors in Global Onboard Partners and borrowers from First Liberty to “contact the Georgia Secretary of State’s office immediately.”
The U.S. Securities and Exchange Commission is leading a federal civil investigation into First Liberty. Raffensperger’s office is ramping up its own investigation into First Liberty, while a court-appointed receiver is working to recoup money for jilted investors. First Liberty’s assets were frozen by federal authorities last year.
“The Georgia Secretary of State’s office is concerned that Global Onboard Partners, LLC may be a fraudulent investment scheme that is still ongoing,” the alert said.
It said it is investigating “whether Global Onboard Partners, LLC and First Liberty are related schemes” and whether borrowers from First Liberty “are legitimate borrowers or part of the First Liberty Ponzi scheme.”
The agency said it has sent letters to some First Liberty borrowers cautioning them not to destroy documents and communications related to their loans, and is issuing subpoenas seeking documents and information from borrowers.
About the Author
As business team lead, Kelly Yamanouchi edits and writes business stories. She graduated from Harvard and has a master's degree from Northwestern.
