How an alleged Ponzi scheme targeting Republicans left investors and politicians reeling

CEDARTOWN Ga AP A federal receiver is on the hunt to recover million lost in an alleged Ponzi scheme that benefited selected Republicans in the top ranks of their party in Georgia and Alabama He s looking to claw back funds including almost political donations totaling more than million that often backed far-right Republican insurgents Specific of these same politicians say they too lost money but others left holding the bag for First Liberty Building Loan are rank-and-file conservatives swayed by talk show pundits who promoted it as an opportunity for Christians and America First MAGA patriots I worked my whole life to build up savings and have a little bit of retirement so I could just live comfortably commented Michael Tinney a -year-old real estate broker from Cedartown Georgia Tinney revealed he deposited after hearing First Liberty pitched on shows hosted by conservatives including Erick Erickson Hugh Hewitt and Charlie Kirk First Liberty had promised returns up to by making high-interest loans to businesses Brant Frost IV an evangelical powerbroker touted Wall Street returns for Main Street investors But he skimmed million for himself his relatives and their affiliated companies and loaned millions more that borrowers never repaid a U S Securities and Exchange Commission lawsuit contends We ve got retired teachers we ve got retired businessmen we ve got retired ministers who have been part of this campaign as well as doctors lawyers everyone else you can imagine his son Brant Frost V commented in Tinney reported the younger Frost drove to his office to secure his expenditure Substantial losses to the investors According to a July analysis from court-appointed receiver S Gregory Hays assets now include just million in cash along with specific Frost family real estate Hays narrated The Associated Press it s too early to estimate how much money is recoverable but he s moving to foreclose on collateral pledged by borrowers who defaulted including a failed South Carolina factory Hays also seized and plans to auction Brant Frost IV s Aston Martin sports car A social media post celebrating that purchase is particularly scorned by angry investors But Hays doubts he can get everything back The investors are going to have substantial losses here he mentioned Georgia and Alabama also are probing Georgia Secretary of State Brad Raffensperger urged politicians to return campaign cash Hays commented he s already received plus a returned charitable donation Frost revealed on July that he takes full responsibility and would spend the rest of my life trying to repay as much as I can to the various people I misled and let down But no criminal charges have been reported and selected Frost relatives retain influential positions in the Georgia Republican Party whose chairman Josh McKoon has had the Frosts political and financial patronage McKoon commented the party returned nearly in Frost donations and he s profoundly saddened that members of our conservative movement lost money A few of the money flowed both strategies Campaign disclosures show First Liberty the Frosts and associated companies contributed widely to Republican causes including more than in Georgia in Alabama and nearly in Maine where the Frosts spent over multiple years renting a Kennebunkport vacation home Georgia donations included to former party chairman David Shafer s unsuccessful lieutenant governor campaign and tens of thousands to the state party Shafer pushed efforts to overturn President Donald Trump s defeat in Georgia leading to an indictment now stalled on pretrial appeal against Shafer Trump and others A company run by Shafer Springwood Capital says in a July lawsuit that it lost invested in First Liberty Its attorney Brent Herrin disclosed the company is one of hundreds of defrauded investors Herrin declined to confirm Shafer owns the company but financial disclosures show Shafer in owned at least part of Springwood Capital s parent company McKoon who received in Frost donations handled Springwood Capital s incorporation papers McKoon commented he didn t lose any money Salleigh Grubbs Georgia GOP first vice-chairman announced on a July radio show that a lot of Republican members were heavily invested In Alabama Republican state Auditor Andrew Sorrell says he and a political action committee he controls both lost money He hasn t noted how much he lost personally but records show Alabama Christian Citizens PAC invested The company had marketed itself through conservative channels as a patriotic and Christian assets opportunity Sorrell declared adding he learned a tough lesson But Sorrell now running for Alabama Secretary of State also benefited He pocketed for his campaigns while Alabama Christian Citizens and Sorrell s federal-level U S Christian Citizens PAC each got Warm words from pundits Erickson an Atlanta-based syndicated radio host once steered listeners to the Frosts They re progressing in conservative politics good Christian family I have known them for years They are wonderful people he stated in This is how we grow this is how we fund our movement and this is how we help out America First MAGA patriots radio host John Fredericks reported during a June interview with Brant Frost V Tinney disclosed the hosts made First Liberty sound pretty credible Now he calls their warm endorsements a recipe for catastrophe and is still waiting for apologies Fredericks did call the SEC complaint disturbing and damning during a July show I have talked to them a multitude of times never had an inkling that any of that was going on Fredericks revealed adding They have to have their day to fight the charges Holding onto power despite the critics Brant Frost V accused Wednesday in a Georgia Ethics Commission complaint of illegally influencing elections resigned from the state Republican committee Thursday and is resigning as Coweta County GOP chairman McKoon stated Krista Frost Brant Frost IV s wife remains on the state committee and Brant Frost V s sister Katie Frost remains rd Congressional District GOP chair McKoon and various allies won party elections in June after a nominating committee led by Katie Frost endorsed them McKoon s vanquished rival David Cross is contesting those results to the Republican National Committee saying McKoon and the Frosts engaged in skullduggery Cross a financial adviser says he first published First Liberty s workable misdeeds to state bureaucrats in Georgia Republican National Committeewoman Amy Kremer whose daughter was among those defeated demanded the Frosts ouster We cannot claim to be the party of law and order while turning a blind eye to financial crimes committed under the banner of Republican leadership Kremer commented For his part Tinney has something else in mind My goal is justice at this point Source