Georgia law aims to repay fraud victims amid $140M Ponzi case charges

Federal prosecutors charged Brant Frost IV last week in the case of the $140 million Ponzi scheme, and Gov. Brian Kemp also signed a law with the goal of returning some of the victims’ lost money.

Frost, 68, founded the Newnan-based First Liberty Building & Loan and appeared in court last week to plead not guilty to a single count of felony wire fraud, which has a maximum sentence of 20 years. 

A court-appointed receiver has been working to recover the money that investors lost in the scheme.

Senate Bill 284, which Kemp signed last Wednesday, enables Georgia’s secretary of state to order that investments be repaid directly to investors. Before this legislation, penalties could only be paid to the state.

“Our priority is clear: protecting the hard-earned assets of Georgia investors,” said Georgia Secretary of State Brad Raffensperger, in a news release. “This law provides the teeth we need to demand justice and ensures that those who seek to defraud our citizens will face the full weight of the law.”

State Sen. Larry Walker, R-Perry and sponsor of the bill, said in a news release that the bill will strengthen protections for Georgians targeted by financial fraud.

“Exploiting hardworking Georgians now comes with additional consequences for the perpetrators under this legislation,” said Sen. Walker. “The safety and security of our residents is always at the forefront of our work in the Georgia Senate, and sadly, we’re seeing increasingly frequent and sophisticated schemes targeting people’s financial assets, especially those of our senior citizens. The victims of these con artists deserve to get their money back, and by empowering the Securities Division to force repayment, we are holding fraudsters accountable and restoring the hard-earned savings of Georgians.”

Kemp signed this bill along with two others on Wednesday last week and has until May 12 to either pass or veto the remaining legislation, or it will automatically become law.