The former co-leader of a collapsed Georgia savings and loan, a lending
firm that is now the subject of state and federal Ponzi scheme investigation
s, has been granted an insurance producer’s license in the state.
Edwin Brant Frost V, who previously worked at First Liberty Building &
Loan with his father, now is a licensed insurance agent in Newnan, Georgia, acco
rding to the National Association of Insurance Commissioners’ licen
se verification site. Frost
obtained the license in August for life, accident and sickness lines, and has
been appointed with several life and health insurers.
For months, news sites and court filings have indicated that the U.S. Sec
urities and Exchange Commission and Georgia authorities have intensi
fied their investigation
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s after First Liberty imploded after the financial firm allegedly defrauded
some 300 investors of more than $140 million. The operation was bill
ed as a Christian, faith-based loan provider.
The SEC filed suit in federal court in Georgia in July, contending that th
e elder Frost, Brant Frost IV, had promised returns as high as 18%. But it was
all a Ponzi scheme st
arting in 2021, and Frost IV allegedly used millions of dollars for personal
gain and for political donations, the SEC complaint argues.
The elder Frost has accepted responsibility and has pledged to repay
investors, according to news reports.
Frost V, the new insurance agent, is not named in the SEC complaint, b
ut he has been subpoe
naed by the Secretary of State’s office. He resigned from First Liberty in J
uly and has declined to comment to news media, the Atlanta Journal Constitution and other sites reported.