Georgia Republican’s Ponzi scheme defrauded people of $140m, say officials

Brant Frost IV's First Liberty Building and Loan lied to investors about lending high-interest loans to small firms

A prominent Georgia Republican was running a Ponzi scheme that defrauded 300 investors of at least $140m, federal officials alleged in a complaint filed on Thursday.

The civil lawsuit by the US Securities and Exchange Commission (SEC) said First Liberty Building and Loan, controlled by Brant Frost IV, lied to investors about its business of making high-interest loans to companies. Instead, investigators said, it raised more money to repay earlier investors.