Alabama Securities Commission inundated with reports of suspected Ponzi scheme in Georgia

The Alabama Securities Commission has been dealing with an increase in inquiries related to an alleged Ponzi scheme involving a well-known individual from Georgia, as revealed by Director Amanda Senn. During a recent regular meeting, Senn highlighted the overwhelming volume of phone calls received by the commission concerning this scheme. She emphasized the importance of alerting the public that the commission was actively monitoring the situation and would intervene if necessary to assist affected investors. Senn mentioned that the commission was collaborating with Alabama Secretary of State Wes Allen to facilitate the return of funds to affected parties.

The commission’s primary objective is to keep tabs on the unfolding developments of the alleged Ponzi scheme, especially if there are any connections or interests relating to Alabama. Senn reiterated the commission’s commitment to stay informed and intervene if there are any unaddressed concerns relevant to Alabama from the ongoing investigation.

The U.S. Securities and Exchange Commission brought to light allegations against Edwin Brant Frost IV, accusing him of operating a $140 million Ponzi scheme that extended financial contributions to at least three Alabama Republicans. Following the revelation, Secretary of State Wes Allen urged all politicians and political committees involved to return any contributions linked to the fraudulent scheme.

Furthermore, former Rep. Andrew Sorrell, who now serves as the Alabama State Auditor, Ben Harrison, and Alabama State Board of Education Member Allen Long were among the Republican individuals who had received donations from Frost. The SEC’s investigation revealed Frost’s misappropriation of over $5 million in investor funds for personal use, including $570,000 in donations to political organizations. Financial records also indicated that Frost and his associates had contributed over $132,000 to Alabama politicians and political action committees.

Sorrell’s PAC, Alabama Christian Citizens, received substantial donations from the Frost family, while Harrison received contributions directly from Brant Frost V and Allen Long was associated with Frost’s company, First National Investments, receiving $40,000 in December 2023. Despite these financial ties, Sorrell and Harrison returned the donations to the court-appointed receiver. Long, who is not currently in an election cycle, has not disclosed any new financial information.

It is essential for the Alabama Securities Commission to continue monitoring the situation closely to safeguard the interests of Alabama residents, especially if any unresolved issues arise from the ongoing investigation. Collaborative efforts with the secretary of state aim to ensure transparency and facilitate the return of funds to affected individuals within the state.