First Liberty founder’s son launches new lending firm after collapse
Days after the financial firm run by his father abruptly shuttered amid a federal fraud investigation, Brant Frost V filed paperwork with state regulators to create a new lending firm in Georgia.
On July 3, Frost V submitted documents to state regulators incorporating Heartland Capital as a mortgage and non-mortgage loan broker.
Neither Frost V nor the family’s attorney have responded to repeated requests for comment about the filing over the course of several days.
In a notice on June 27, Newnan-based First Liberty Building & Loan announced it was ceasing all operations and “cooperating with federal authorities as part of an effort to accomplish an orderly windup of the business.”
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
Top Georgia Republican calls on pols to return First Liberty contributions
The Securities and Exchange Commission alleged last week in a lawsuit Frost’s father, Brant Frost IV, with leveraging his deep connections to Georgia’s conservative political circles to orchestrate a $140 million Ponzi scheme.
The Georgia Secretary of State’s office is also investigating.
Frost IV issued a public apology last week, asking investors to give a court-appointed receiver “time to sort things out and do his best to repair the damage I created.”
“I take full responsibility for my actions and am resolved to spend the rest of my life trying to repay as much as I can to the many people I misled and let down,” he said.
Frost IV, who founded the firm in 1993, is the only First Liberty executive named in the SEC complaint. But records and interviews show Frost V, a former Georgia GOP vice chair, also played a prominent role in the firm, including recruiting potential investors on conservative talk radio.
About the Author
Greg Bluestein is the Atlanta Journal Constitution's chief political reporter. He is also an author, TV analyst and co-host of the Politically Georgia podcast.
