Alabama Securities Commission overwhelmed with inquiries about Georgia political Ponzi scheme

h authorities regularly, so we’re on top of that there and working with the Secretary of State for assistance we can provide there and vice versa,” Senn said.

In an interview, Senn mentioned that the ASC is closely following the case for any updates that may be of interest to Alabama. It is important for them to monitor the information that arises from the investigation and to step in if there are any Alabama-specific interests that need to be protected or addressed.

The individual at the center of this alleged Ponzi scheme is Edwin Brant Frost IV, who was accused by the U.S. Securities and Exchange Commission (SEC) in July of running a $140 million Ponzi scheme that involved making contributions to at least three Alabama Republicans. This situation prompted Alabama Secretary of State Wes Allen to call for all politicians and political action committees (PACs) involved to return any contributions related to the scheme.

Among the Republican officials who received contributions from Frost were then-Rep. Andrew Sorrell, R-Muscle Shoals, who is currently the Alabama State Auditor; Ben Harrison, R-Elkmont; and Alabama State Board of Education Member Allen Long. The SEC alleged that Frost misappropriated over $5 million of investor funds for personal use and used $570,000 of these funds for political donations. Campaign financial records reveal that Frost, his family members, or his businesses made contributions totaling at least $132,000 to Alabama politicians and PACs.

Sorrell and his PAC, Alabama Christian Citizens, received a significant sum in contributions from the Frost family, and Sorrell’s PAC even extended a loan to Frost’s company. Harrison also received substantial donations from Brant Frost V, while State Board of Education member Allen Long received funds from Frost’s company, First National Investments.

In response to the situation, Sorrell and Harrison have returned the donations they received to the court-appointed receiver. However, Long, who is not currently up for reelection, has not provided an updated campaign report this year.

The ASC and other authorities are actively involved in monitoring the developments surrounding this case to protect investors and address any potential concerns specific to Alabama. It is crucial that all relevant parties cooperate and take appropriate actions to ensure that justice is served and those affected by the alleged Ponzi scheme are supported.

[Note: For informational purposes only. No direct sources to be attributed.]