The entrance to First Liberty Building and Loan is seen on July 11, 2025 in Newnan, Georgia. The Alabama Securities Commission has opened an 'inquiry' into the business, which federal prosecutors accuse of running a Ponzi scheme. (Jill Nolin/Georgia Recorder)
The Alabama Securities Commission (ASC) has opened an inquiry into an alleged Georgia-based Ponzi scheme involving First Liberty Building and Loan and its owner, Edwin Brant Frost IV.
Amanda Senn, director of the ASC, said in a phone interview Monday that the move is not an investigation. The agency is actively monitoring the situation and coordinating with authorities in both Alabama and Georgia “to be sure Alabama investors are protected,” and that the agency will elevate the case to an active investigation if Georgia takes further action.
“It’s on our radar,” Senn said. “We’ve got personnel dedicated to monitoring the situation in its entirety.”
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A lawsuit filed by the U.S. Securities and Exchange Commission (SEC) on July 10 in the U.S. District Court for the Northern District of Georgia alleged that Frost and his associated investment firms raised at least $140 million between 2014 and 2025 through fraudulent means. The lawsuit further alleges that Frost used $570,000 of the misappropriated money for political donations.
According to campaign finance records, Frost, members of his family or his businesses made at least $132,000 in contributions to Alabama politicians and political action committees (PACs).
Former Rep. Andrew Sorrell, R-Muscle Shoals, now the Alabama state auditor and a candidate for Secretary of State; Rep. Ben Harrison, R-Elkmont; and Alabama State Board of Education member Allen Long were among the Alabama politicians who accepted contributions either from Frost or one of his various investment firms.
Senn said that if the situation warrants, the ASC could “elevate” their case to a full investigation, which could involve issuing subpoenas.
“Should something in (Georgia’s) case cause us to need to elevate, file or launch an active open investigation, then we’ll do that,” she stated.
Senn said that they are prepared to launch their own active investigation, if necessary, but “if our Alabama investors are protected with the Georgia investigation,” the agency would avoid duplicating efforts by not launching its own investigation. She added that the ASC is assisting and providing information that may be “pertinent to other active criminal investigations right now.”
Alabama Secretary of State Wes Allen last week called for those who received political contributions from Frost or one of his investment firms to return the funds, saying he takes “allegations of financial fraud seriously, especially when that fraud bleeds into campaign finance.” The Alabama Secretary of State’s Office oversees campaign finance reporting but does not have the power to investigate or prosecute alleged violations of the law or compel the return of contributions.
Sorrell and his PAC, Alabama Christian Citizens, collectively received at least $71,000 in contributions from the Frost family and their investment entities. Harrison received over $21,000 in donations from Brant in 2022, and Long, a conservative member of the Alabama State Board of Education, received a $40,000 donation from First National Investments in December 2023. Sorrell and Harrison said in separate interviews earlier this month that they would return the contributions to the court-appointed receiver. Long has not returned requests for comment.
The number of Alabama investors affected by the scheme is still unclear, but Senn said “we know there are investors in Alabama.” A receiver has been appointed in Georgia to collect contributions made to politicians and gather more information about the investors.
Senn said that any decision to launch a public investigation by the ASC would be made public, as it is “something that people need to know.”
From Alabama Reflector Post Url: Visit
Author: Alander Rocha