by Edwin Brant Frost IV, a well-known Republican in Georgia, was charged by the Securities and Exchange Commission on Thursday with operating a Ponzi scheme that duped 300 investors out of at least $140 million.
Mr. Frost was charged in the civil complaint, which was filed in a federal court in Georgia, with breaking antifraud laws and embezzling investor funds through First Liberty Building and Loan, the company he formed.
Additionally, it charged Mr. Frost, 67, a Republican supporter and well-known supporter in Georgia, with utilizing investor funds to make over $570,000 in political contributions. To whom it did not specify.
Mr. Frost acknowledged full responsibility for his conduct and promised to work toward repaying investors in a statement released by his attorney, Joshua Mayes.
Without acknowledging or refuting its accusations, the S.E.C. said on Thursday that Mr. Frost accepted its suggested remedies, which included freezing assets.
According to the complaint, Mr. Frost misled investors about the use of their funds for short-term bridge loans to businesses while they obtained longer-term funding. They were promised substantial profits, up to 18 percent in some situations.
The content of the article is not being retrieved.
Please make sure that JavaScript is enabled in your browser.
We appreciate your patience as we check access. Please log out of Reader mode and sign in to your Times account, or subscribe to The Times in its entirety.
We appreciate your patience as we check access.
Are you a subscriber already?Sign in.
Do you want to read every Times article?Sign up.
