Edwin Brant Frost IV, former president of First Liberty Building & Loan LLC, was arraigned on Apr. 23 on a federal wire fraud charge for allegedly running a multi-million-dollar Ponzi scheme in Newnan, Georgia.
Federal authorities say the case involves hundreds of investors and significant financial losses. The U.S. Attorney for the Northern District of Georgia serves as the principal federal law enforcement agency in the district and is responsible for enforcing criminal laws and representing the United States in civil matters while working with law enforcement to protect public safety, according to the official website.
U.S. Attorney Theodore S. Hertzberg said, “Frost abused the trust of his clients, family, and friends by allegedly soliciting investors with promises of sizable returns, while knowing the money raised would instead be used for his personal expenses and to pay early investors to maintain the illusion of profits.” Hertzberg added that authorities will pursue those who defraud victims out of their savings.
Marlo Graham, Special Agent in Charge of FBI Atlanta, said: “Frost allegedly operated a classic Ponzi scheme—using new investor funds to pay earlier investors while concealing significant financial losses. Schemes like this exploit trust and can devastate victims’ savings and retirement security. The FBI remains committed to holding accountable those who engage in financial fraud and to protecting the investing public.”
According to information presented in court by U.S. Attorney Hertzberg, from at least 2021 until July 2025 Frost raised at least $140 million from more than 300 investors through what he described as short-term small business loans called Bridge Loans. Instead of using these funds solely for loans as promised, Frost used new investments to pay previous investors' returns and covered over $5 million in personal expenses such as luxury rentals, jewelry purchases including a Patek Philippe watch worth $20,800, credit card bills exceeding $2 million, and political contributions totaling over $570,000.
Kyle A. Myles from FDIC OIG Atlanta Region said: “The defendant in this case was charged today for allegedly orchestrating a multi-million-dollar Ponzi scheme that defrauded hundreds of investors.” Myles stated that efforts continue alongside law enforcement partners "to investigate allegations of fraud...as we seek to protect consumers and preserve the integrity" of banking.
The Northern District covers an area serving about 7.5 million residents across north Georgia mountains through Atlanta suburbs up to borders with Alabama and Carolinas according to its official website. The office also coordinates cases with national or international dimensions according to its official website.
Frost was released on bail pending further proceedings before Chief U.S. Magistrate Judge Justin S. Anand. Prosecutors remind that charges are allegations; Frost is presumed innocent unless proven guilty or admits guilt in court.
