First Liberty Building and Loan, a private, non-bank lending firm based in Newnan, has abruptly ceased operations, leaving clients- some of whom have invested tens or even hundreds of thousands of dollars-without promised payments or clear answers.

On June 27, the firm posted a statement on its website announcing a complete suspension of operations and investor payments.

“Interest payments on existing promissory notes, bridge loan participation interests, and other investment programs are indefinitely suspended,” the statement reads. “First Liberty is cooperating with federal authorities as part of an effort to accomplish an orderly wind-up of the business.”

Brant Frost V, Chairman of the Coweta County GOP and First Vice President of the Georgia Republican Assembly (GRA), has marketed the company along with his father, Brant Frost IV, to be a faith-based firm in the financial world, promoting conservative, Christian values and claiming to be the answer towards funding the “Patriot economy” through funding local businesses. Records from the GRA show that they received a donation of $124,000 from an organization titled First National Investments, which shared an address with First Liberty Building and Loan.

  Fayette County School Board Vice Chair Randy Hough, representing District 1, was also involved with the company as a senior development officer.

According to testimonies provided by the Newnan Times-Herald of individuals affected, many clients feel hopeless and panicked about whether they will see their money again. Judy Stanton and her husband, for example, have put $450,000 into the firm in installments from last October to this past April. Stanton noted that she believes the company knew they were in trouble while still accepting clients’ funds. Additionally, she saw that two weeks ago Brant Frost V had posted on social media photos of him and his wife vacationing in England, seemingly not in a panic regarding their company that would be completely in shambles two weeks later.

Unlike traditional banks, First Liberty was not FDIC-insured or regulated by federal banking authorities. The firm raised their money through their clients- who they often had personal meetings with- and creating “First Liberty Notes” that advertised returns of 8-13% annually. These funds were then used to issue short-term bridge loans to local small and mid-sized businesses.

Due to not being backed by the FDIC, investors face a larger risk. With no federal insurance protection, investors have no promise of recovery and will have to instead rely on the outcome of the ongoing investigation. 

Questions remain about whether Frost was running a Ponzi scheme, irresponsible with client money, or engaging in some other kind of fraud.

Currently, Georgia’s Secretary of State office is launching a civil securities investigation of  First Liberty Building and Loan, and the FBI is now joining the case. According to the Newnan Times-Herald, the FBI has begun seizing company records and overseeing the firm’s shutdown. Those who believe they may be affected are encouraged to report potential fraud through the FBI’s tip form website.