Georgia Republican apologizes for $140M Ponzi scheme as judge freezes assets
Atlanta (AP) – A leading Georgia Republican 140 million dollars of ponzi plan A federal judge ordered the freezing of their assets and appointed a buyer to try to make cash for investors.
Brant Frost IV, in a statement published through his lawyers, said, “I want to apologize to the people I have damaged, but I’m under restrictions that prevent me from doing so,” he said.
Orum I take full responsibility for my actions, and I am determined to spend the rest of my life by trying to pay back to many people I have misleaded and disappointed, ”Frost said. “I will cooperate with the buyer and federal authorities, and ask everyone to allow the buyer to solve the works and do his best to repair the damage I have created.”
US Securities and Stock Exchange Commission is a civilian The case Thursday The first freedom building and loan controlled by Frost lied to investors about making high -interest loans to companies. Instead, the inspectors said that loans were mostly sour, and then collected more money to pay back to previous investors, and Frost has rained millions of money for him and his family.
The collapse of the company shook religious and political networks that feed cash to the business in the Newnan suburban center in the southwest of Atlanta. Furthermore, it may have consequences in state republic politics by reducing financing to the far -right candidates preferred by Frost and his family. Inspectors said Frost spent $ 570,000 from investor funds on political contributions.
US regional judge Michael Brown froze Frost Frost’s personal and institutional assets on Friday, banned him from securities, and ordered to repay badly earned earnings with interest and fines. He demanded the order order and Frost accepted without accepting or rejecting any real claim.
The judge also appointed financial advisor S. Gregory Hays as a buyer. He will take control of beings, examine the books and try to get the money back. For now, everyone was banned from fling the Frost or First Liberty for everyone.
SEC, the business as of May 30, only 2.67 million dollars in cash, he said. 300 investors raised $ 140 million, which means that the average investor was about $ 500,000.
Frost is claimed to have received $ 17 million for his, family and affiliated companies, political donations to Republicans, 160,000 dollars in jewels, 20,800 dollars in a patek Philippe Watch and 335,000 dollars to buy gold mine. Frost is also accused of spending $ 320,000 to rent a holiday home for several years at Kennebunkport, the town of Late President George HW Bush’s family.
