Investigators in Georgia have accused political donors of linking their contributions to a suspected Ponzi scheme, prompting an ethical complaint.
The Georgia Republican Assembly PAC (GRA PAC), linked to the collapsed First Liberty Building & Loan Ponzi scheme, is under investigation by the Georgia State Ethics Commission for multiple violations of Georgia election law.
According to public records, the PAC, which was first registered as a political action committee in 2022, has been accused of failing to report tens of thousands of dollars in campaign expenditures, not filing required campaign reports, and not properly registering as an independent political committee before accepting donations. The PAC is also under scrutiny for allegedly influencing elections in 2022 and 2024.
The PAC was primarily funded by the Frost family, the owners of First Liberty. Brant Frost IV, the founder of First Liberty, is accused by the Securities and Exchange Commission of diverting millions for personal use and funneling over $570,000 into political donations, with approximately $162,000 going to the GRA PAC.
The president of the Georgia Republican Assembly stated that only the Frost family had control and oversight of the PAC, and it was already in the process of being shut down following the Frost's resignation from the Georgia Republican Assembly. However, the Ethics Commission’s investigation is ongoing, with additional charges possible at a future date.
The unreported expenditures funded ads attacking Georgia state Representative Dale Washburn's support for letting "special immigrants" qualify for in-state tuition, a "Fight the Fake News: Protect the Children" school board campaign ad, and others.
Prominent Alabama Republicans like state Auditor Andrew Sorrell, Barry Moore, and Mo Brooks received money from the Frost family. Sorrell's PAC received tens of thousands after he claims to have fallen victim to Frost's Ponzi scheme. Alabama Secretary of State Wes Allen issued a statement asking individuals who received contributions from First Liberty Building & Loan to return them to the court-appointed receiver.
First Liberty and Loan was charged by the federal Securities and Exchange Commission for operating as a Ponzi scheme since 2021. The website of First Liberty and Loan states it has ceased all business operations and is cooperating with federal authorities.
Brant Frost V, the son of Brant Frost IV, was the organizer of the PAC in 2017, and the PAC took its name from the Georgia Republican Assembly. The PAC does not seem to have made any payments to companies based in Alabama, according to the properly filed expenditures.
The case remains active, and further legal actions are expected. For more information, contact Chance Phillips at cphillips@our website.
[1] Georgia State Ethics Commission filings [2] Securities and Exchange Commission complaint against First Liberty Building & Loan [3] Public records of donations to the Georgia Republican Assembly PAC [4] Statements from the president of the Georgia Republican Assembly
- The ongoing investigation by the Georgia State Ethics Commission involves policy-and-legislation, politics, and finance, as they examine multiple violations of Georgia election law by the Georgia Republican Assembly PAC, linked to the collapsed First Liberty Building & Loan Ponzi scheme.
- The collusion between business (First Liberty Building & Loan) and politics is under question, as Brant Frost IV, the founder of First Liberty, is accused of funneling over $570,000 into political donations, with approximately $162,000 going to the GRA PAC, contributing to the finance of the PAC's ads related to general-news issues like immigration and school board campaigns.
- The crime-and-justice aspect of this case is also significant, as Brant Frost IV is accused by the Securities and Exchange Commission of diverting millions for personal use and defrauding many through the First Liberty Building & Loan Ponzi scheme, a matter that is now under federal investigation.
