The State Ethics Commission expanded an investigation of political contributions that stemmed from the collapse of First Liberty Building & Loan, casting a fresh spotlight on an ultraconservative organization with close ties to the founder’s son.
In July, the commission charged the Georgia Republican Assembly PAC with 61 violations of state campaign finance laws, accusing it of illegally trying to sway elections. On Wednesday, investigators added the affiliated Georgia Republican Assembly itself as a defendant in the case.
Both political groups are closely tied to First Liberty founder Brant Frost IV and his family, who have pushed to purge more mainstream Republicans from the GOP’s ranks in recent years. The PAC was long led by his son, Brant Frost V, before it dissolved in June.
“These charges represent the results of an ongoing investigation into illegal activity to influence Georgia elections by these organizations,” David Emadi, the ethics commission’s director, said Wednesday.
Alex Johnson, GRA’s chairman, didn’t immediately respond to requests for comment. He has previously stressed his group operated independently of the PAC.
The expanding investigation is the latest fallout from the collapse of First Liberty in June. The U.S. Securities and Exchange Commission has accused Frost and his firm of running a $140 million Ponzi scheme that squandered investors’ money on vacations, political contributions and other personal spending.
Credit: Screenshot
Credit: Screenshot
Frost IV has apologized and urged victims to work with a court-ordered receiver and his efforts to recover money. Frost V, who regularly promoted First Liberty on conservative media, has repeatedly declined to comment.
A recent review by The Atlanta Journal-Constitution found the Frosts spent nearly $1.4 million on campaign contributions to fuel far-right causes in Georgia and across the nation.
Secretary of State Brad Raffensperger’s office opened its own probe of the firm, recently issuing subpoenas to Nathaniel Darnell, a financial adviser who is one of the GRA’s leaders.
‘Growing in numbers’
The ethics commission’s investigation initially focused on the GRA PAC, which was accused of illegally influencing elections with more than $220,000 in unreported expenditures.
The GRA’s leaders repeatedly distanced the organization from the political action committee. But the expanded ethics complaint suggests investigators believe they worked more closely together than appeared.
Documents obtained by the AJC include emails to GRA mailing lists that include direct “donate” links to the PAC. In one of the dispatches, Johnson made a direct appeal for contributions to the PAC.
“We’re still growing in numbers (an announcement on a new chapter or two forming is coming in the near future), and the GRA-PAC is raising money. If you have pledged, please be sure to carry through!” it read.
Other emails show Johnson and GRA officials regularly promoting the PAC as part of their organizational efforts. In a February 2018 dispatch, Johnson encouraged members to support the GRA PAC and other conservative causes “so we can continue to do strong work around the state.”
Such coordination doesn’t necessarily constitute a violation of state campaign finance laws. But it underscores the close ties between two groups now at the center of the ethics commission probe.
Credit: Jason Getz/AJC
Credit: Jason Getz/AJC
Darnell has previously stressed that the PAC was “completely separate” from the organization and that only the Frost family had oversight. He said the PAC disbanded in late June, shortly after Frost family members resigned from the GRA in a broader revolt over the organization’s direction. It reported roughly $2,200 in cash in its most recent disclosure.
Johnson acknowledged promoting the PAC, telling the AJC in a recent statement that his organization “believes and has believed that those citizens who are able should give money to the few Republicans and liberty loving groups and causes that support good governance.”
“The GRA-PAC, which is legally separate from the GRA, is believed to have supported such groups and causes, to counteract the influence of corporate lobbyist money on politics,” he said.
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