Federal officials say a prominent Georgia Republican was running a $140 million Ponzi scheme

Newnan, Ga. (AP) – a leading Ponzi plan that defrauded a Georgian Republican, at least 140 million dollars of 300 investors, Federal Authorities Complaint Thursday.

Civil case US Securities and Stock Exchange Commission Brant Frost IV. Instead, the inspectors said he had collected more money to pay back to previous investors.

Frost itself is claimed to have received more than $ 19 million investor funds for his family and affiliated companies, even when the business is broken, he spends 160,000 dollars on jewels and a rare coin seller with 335,000 dollars. Frost also said that Maine, the town of Late President George HW Bush, spent 320,000 dollars to rent a holiday home for several years in Kennebunkport.

SEC Said Frost continued writing checks even after the commission investigation started

Last month, the first freedom said that investors in these loans would stop paying credit and interest and manager. The company said it did not respond to phone calls or e -mails.

The first Liberty did not respond to an e -mail looking for a comment, and there was no one in his office in Newnan in the southwest of Atlanta on Thursday evening. A lawyer who served as a registered agent of the company for corporate purposes said he had never known before.

The collapse shook the religious and political networks that the business attracted investors. 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.

SEC said that the business was only $ 2.67 million in cash as of May 30, but the regulators are trying to get the money back from frost and related companies. With 300 investors $ 140 million, the average investor earns approximately $ 500,000.

First Liberty, the US Small Business Administration, while waiting for more traditional loans, he said he gave loans to companies in need of money. According to a document obtained by Associated Press, high interest rates – 18% in some loans.

In recent months, the business has been intensively advertising in conservative radio shows that promised hopes for “Wall Street Turns for Main Street investors”.

“A promise of an investment higher than an investment, a red flag that allows all potential investors to think two or maybe three times,” SEC’s Atlanta Regional Office Executive Director Justin C. Jeffries said.

The company represented that it cooperates with Federal authorities as part of the effort to ensure that it is regularly embracing the business ”. SEC, Frost and companies’ executive actions of SEC’s execution actions “by the court for the determination of monetary solutions,” he said.

When SEC said that there was a loan to companies, 90% of these companies fell default. By 2021, the company worked as a ponzi plan, although the complaint had increased money by Frost.

The enterprise is investigated by the Georgian Minister of Foreign Affairs for possible violations of the Law of Mental Assets.

The 2023 certificate obtained by the EP is called “deed ve and the sinners, the deed notes, said that everyone who gave the notes should be recorded to the Georgia Securities officials.

Sins encouraged any victim to communicate with the state securities department.

Federal prosecutors refused to comment on whether they were thinking about criminal charges. Sometimes it is filed with both SEC legal case and a federal criminal case over the investment fraud.

Frost has been an important player in Georgia politics, which he has coordinated since 1988. Pat Robertson’s Republican Presidential proposal in the state. His son Brant Frost V is the president of the Coweta District Republican Party where the company is located and is the second former vice president of the state Republican Party. His daughter Katie Frost is the president of the 3rd Congress Region, which includes Coweta district and other regions in southwest of Atlanta.

Katie Frost, the state of the state of the state of the last month, chaired a nomination committee that proposes the re -election of the delegates. Josh McKoon. The delegates were rejecting a series of rebels, following this advice.