Georgia Secretary of State Brad Raffensperger has joined a growing chorus of voices calling for the return of political contributions from the now-defunct First Liberty Building and Loan, a Newnan-based lending firm with longstanding ties to the Republican Party.
The company has come under fire after federal officials filed a lawsuit accusing First Liberty’s founder, Brant Frost IV, of running a Ponzi scheme that defrauded 300 investors out of at least $140 million. According to the complaint, Frost misled investors about the nature of his business while funneling over $5 million to himself and his family members. He also improperly used investor funds to make more than $570,000 in political contributions, the complaint alleged, all of which went to Republican candidates and committees.
“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,” Frost said in a statement issued through his lawyer. “I will be cooperating with the receiver and federal authorities and ask that everyone allow the receiver time to sort things out and do his best to repair the damage I created.”
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