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The Securities and Exchange Commission has filed a complaint against Georgia’s Edwin Blunt Frost IV and his first Liberty Building & Loan, LLC.
The document alleges that Frost and his company have raised at least $140 million from around 300 investors through loan participation agreements and sales of promissory notes that provide annual revenues of 8% to 18%.
“As of 2021, approximately 80% of interest and principal payments to investors were raised from new investor funds, not from interest payments on bridge loans or principal repayments,” the SEC complaint alleges.
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US Dollar in Istanbul, December 7, 2021 (Ozan Kose/AFP via Getty Images)
The SEC used investors’ funds in a variety of ways. Part of this included buying a political donation of more than $570,000, a $20,800 watch and making “more than $2.4 million to credit cards issued to him and his business entity.”
The Associated Press showed Frost is a Republican.
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The elephant, a Republican icon, is located in a rug in the lobby of Republican headquarters in Washington. (Brooks Kraft LLC/Corbis via Getty Images)
“The high return on investment promise is the red flag that should make every potential investor think twice or three times before investing their money,” said Justin C. Jeffries, associate director of the Executive Association of the SEC’s Atlanta Regional Office, according to a press release.
“Unfortunately, we’ve seen this film before. The bad actor invites investors to make a seemingly generous return, but that doesn’t work.”
Robbins’ lawyer Joshua MaysAlloy Bellinfante Littlefield LLC, representing Frost in the matter, provided Frost with a statement to Fox News Digital that acknowledged that he misunderstood people.
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Tom Stoddart/Getty Images burning in London on August 8, 2011
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“I am determined to spend the rest of my life trying to take full responsibility for my actions and pay back to many people I have misunderstood and disappointed. I am asking everyone to work with the receivers and federal authorities to organize things in the receivers and do their best to repair the damage I have created,” Frost said.
“I would like to personally apologise to those who hurt me, but I am under the restrictions that prevent me from doing so. I don’t deserve it, but I am grateful for the support of my friends and family as I stand up to this situation I have created.”
Alex Nitzberg is a writer for Fox News Digital.
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