The US Securities and Exchange Commission (SEC) says that a Georgia man reportedly cheated 300 investors in a Ponzi scheme after his loan activities fell apart.
In a new press release, the Secwin Brant Frost IV and his company, First Liberty Building & Loan, accuses the running of a Ponzi scheme by misleading funds and misleading investors.
According to the authorities, between 2014 and June 2025, the company operated by investors of investors and loan participation agreements with returns up to 18% for short-term loans to companies at high interest rates that rarely fail. Frost and his company would have assured investors that the loans in default would be reimbursed by borrowers using funds from the Small Business Administration or other commercial lenders.
But since 2021, Frost is said to have performed First Liberty Building & Loan as a Ponzi schedule after most of the loans were in default. The SEC accuses Frost of the use of new investor capital to make main and interest payments to existing investors.
The complaint also claims that Frost abused the funds for personal use, such as buying rare coins, paying off personal debts and going on holiday. The SEC accuses Frost and First Liberty Building & Loan of the chief of 300 investors for an amount of $ 140 million.
Says Justin C. Jeffries, associated director of enforcement for the Regional Office of the SEC,
“The promise of a high return on an investment is a red flag that all potential investors would have to think twice or maybe even three times before they invest their money. Unfortunately we have seen this film previously seen-strict actors with promises of apparently generous returns and it does not end well.”
In a statement to FOX News, Frost admits his involvement and misconduct in the schedule and says he will collaborate with researchers.
“I take full responsibility for my actions and am determined to spend the rest of my life back as much as possible to the many people I have misled and disappointed. I will collaborate with the recipient and federal authorities and ask that everyone has the recipient the time to find things and do his best to repair the damage I have made.”
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