Georgia Republican’s Ponzi scheme defrauded people of $140m, say officials | Georgia
Federal officials allegedly filed a complaint on Thursday, a leading Georgian Republican at least 140 million dollars of 300 investors of a ponzi plan was running.
The US Securities and Stock Exchange Commission (SEC) said that the first freedom building controlled by Brant Frost IV and the loan lies to investors about the business of giving high interest rates to companies. Instead of researchers in questionHe 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, a late president George HW Bush family, spent 320,000 dollars to rent a holiday home for several years in Kennebunkport.
SEC said Frost continued to write checks even after the commission started the investigation.
First freedom in question In June, credit and interest and interest to investors in these loans would stop paying payment. The company said it did not respond to phone calls or e -mails.
The first freedom did not respond to an e-mail looking for a comment, and no one was found in a suburban suburb 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 (SBA), while waiting for more traditional loans, he said he gave loans to companies that require cash. According to a document obtained by Associated Press, high interest rates – 18% in some loans. First Liberty promised investors with equally high return rates – 16% in 18%.
In recent months, the business has been intensively advertising in conservative radio shows that promised hopes for “Wall Street Turns for Main Street investors”.
“The promise of high return of an investment is a red flag that allows all potential investors to think two or maybe three times before depositing their money,” said Justin C Jeffries, Executive Director of the Atlanta Regional Office. He 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’ execution 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, he said that the company was working as a ponzi plan, although the complaint has withdrawn by Frost’s increasing amount of money.
Office spokesman Robert Sinners said the enterprise was investigated by the Georgian Minister of Foreign Affairs for possible violations of the laws of securities.
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.
Since 1988, Frost has been an important player in Georgia politics, which Pat Robertson, who has coordinated the Republican Presidential proposal. 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 Republican president of the third congress zone, including other regions of Coweta and other regions of Atlanta.
At the Cumhuriyet Convention of June, Katie chaired a nomination committee that proposes the re -election of the delegates. The delegates were rejecting a series of rebels, following this advice.
