First Liberty Building and Loan in Newnan, Georgia. (FOX 5)
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ATLANTA – Georgia’s state ethics watchdog has filed a complaint against a political action committee linked to a $140 million investment fraud, alleging it illegally tried to influence elections while failing to follow campaign finance laws.
Georgia Republican Assembly PAC ethics complaint
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What we know:
The complaint, filed Wednesday by the Georgia Government Transparency and Campaign Finance Commission, says the now-dissolved Georgia Republican Assembly PAC spent more than $220,000 between 2021 and 2024 to directly advocate for or against political candidates without registering as an independent committee. Such activity would violate Georgia campaign finance rules.
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The PAC was chaired by Edwin Brant Frost V, whose father, Edwin Brant Frost IV, is accused by the U.S. Securities and Exchange Commission of running a Ponzi scheme through a company called First Liberty Building & Loan. Federal investigators say Frost IV raised funds from around 300 investors, promising high returns through short-term loans to businesses. Instead, the SEC alleges Frost IV used new investments to pay earlier ones and diverted millions for personal use, including over $570,000 in political donations.
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More than $1 million in investor money reportedly went toward political activity, strengthening the Frost family’s influence in Republican politics across Georgia, Alabama, Maine and other states. Some of that spending was disclosed in public records, but the Ethics Commission says a portion was not.
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Claims of ‘dark money’
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What they’re saying:
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“The ethics complaint filed today represents our initial charges against the Georgia Republican Assembly-PAC,” said Ethics Commission Executive Director David Emadi. “Our investigation remains ongoing and additional charges may be coming at a future date, but we intend to aggressively pursue all violations of Georgia law committed by the GRA which illegally influenced elections in 2022 and 2024.”
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State Rep. Dale Washburn, a Macon Republican, said he was targeted by the PAC in a 2022 mailer and believes the lack of transparency is harmful.
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“The whole dark money thing, where you can attack a candidate with a name that really doesn’t represent who is behind the attack, I think that is a problem and it should be addressed,” Washburn said.
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Washburn added that he believed he was targeted due to his support for the late House Speaker David Ralston and a bill that would have granted in-state tuition to some undocumented immigrants.
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“I was kind of taken aback by those mailers when they happened and was honestly angered by them because I thought they were very deceitful and misrepresented some things,” he said.
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Campaign disclosures show that most of the PAC’s funding came from the Frost family and affiliated businesses. The PAC frequently supported Republican candidates who opposed Ralston, whom the Georgia Republican Assembly (GRA) considered a corrupt moderate. The complaint also notes undisclosed spending in school board races in Coweta County, where the Frosts reside, and in a Meriwether County commission race.
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Court-appointed receiver seeks investor funds
The federal investigation into the Newnan business accused of defrauding investors in a massive Ponzi scheme continues. For the first time. We’re hearing from the man who is working to track down the missing millions linked to the company — First Liberty Building and Loan.
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Frost splits with GRA
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Dig deeper:
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Although the PAC shared a name with the Georgia Republican Assembly, the two organizations were separate, according to GRA President Nathaniel Darnell. He said the PAC was authorized and promoted by the GRA but operated independently under the Frosts’ control.
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“The entire time the PAC was in operation, the Frosts controlled it with zero oversight from the GRA organization,” said Darnell, who also disclosed that he personally lost money invested in First Liberty.
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The Frosts fell out with the GRA following the state Republican convention earlier this year, when the group expelled Katie Frost, sister of Brant Frost V. She had chaired a nominating committee that advised against several GRA-backed candidates. Brant Frost V and his supporters resigned shortly after.
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First Liberty Ponzi scheme
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The backstory:
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Although no criminal charges have been announced, the SEC’s civil case against Frost IV is pending in the U.S. District Court for the Northern District of Georgia. Investigators say Frost IV misappropriated investor funds for rare coins, luxury vacations, credit card bills, and political donations. He consented to emergency relief measures including an asset freeze and expedited discovery, without admitting wrongdoing.
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Brant Frost V has not been named in the SEC’s lawsuit, but a subpoena filed last week seeks information about his activities as an employee of First Liberty. He also incorporated a new company, Heartland Capital LLC, on June 26—one day before First Liberty declared bankruptcy.
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No further comment
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What we don’t know:
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The younger Frost promoted First Liberty on conservative talk shows and interacted directly with some investors, according to the SEC. He did not respond to messages seeking comment. A lawyer for his father also did not reply, but previously took responsibility in a statement.
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The Source: The Associated Press and FOX News provided the details for this article. Previous FOX 5 Atlanta reporting was also used. Additional details were sourced from the Georgia Government Transparency and Campaign Finance Commission.
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