## Overview First Liberty Building & Loan was a Newnan, Georgia-based financial firm specializing in small business lending, particularly offering promissory notes and bridge loan participations to retail investors[1][2]. Founded in 1993 by Edwin Brant Frost IV, the company positioned itself as a mortgage banker and general contractor, targeting investors with promises of high returns—up to 18%—by purportedly channeling funds into short-term, high-interest bridge loans for businesses[2][4]. The firm leveraged its owner’s political connections, especially within Georgia’s conservative circles, to attract investors, including through appearances on conservative talk radio[7]. ## History and Operations For over a decade, First Liberty marketed itself as a trusted local lender, building a reputation in the community and maintaining an A+ rating with the Better Business Bureau, though it was not BBB accredited[4]. The company’s business model involved pooling investor funds to make what were described as construction and bridge loans, with assurances that repayment would come from Small Business Administration or commercial loans[2]. However, regulatory filings and investigative reports indicate that, while some loans were made, the majority defaulted, and the operation increasingly relied on new investor money to pay existing investors—a hallmark of a Ponzi scheme[2]. ## Key Achievements and Notable Aspects First Liberty’s most notable—and notorious—aspect is its rapid unraveling in mid-2025. The U.S. Securities and Exchange Commission (SEC) charged the company and Frost IV with operating a $140 million Ponzi scheme that defrauded approximately 300 investors[2]. The SEC complaint alleges that, since at least 2021, the firm used new investor funds to pay previous investors, while Frost IV allegedly misappropriated millions for personal expenses, including credit card payments, rare coins, and family vacations[2]. The case has drawn significant media and political attention, with a U.S. Congressman questioning regulatory oversight and