Regulators subpoena Frost’s son following emergence of new lending firm.

State regulators have issued a subpoena to Brant Frost V, the son of the founder of First Liberty Building & Loan, after he established a new lending firm following the closure of his family’s financial firm amid a federal fraud investigation. The Secretary of State’s securities division issued the subpoena seeking financial records, including compensation agreements, business records, and bank statements related to Frost’s new firm, Heartland Capital. Frost V submitted paperwork to incorporate Heartland Capital as both a mortgage and non-mortgage loan broker just days after First Liberty shut down. The Newnan-based firm announced its closure on June 27, stating that they were cooperating with federal authorities for an orderly windup of the business.

The Securities and Exchange Commission has accused Frost’s father, Brant Frost IV, of orchestrating a $140 million Ponzi scheme that targeted hundreds of conservative investors by leveraging political connections, MAGA influencers, and faith-based appeals. Frost IV, the company’s founder, is the sole executive named in the SEC complaint. He has publicly apologized and urged investors to allow a court-appointed receiver to help resolve the damage caused. Frost V, a former Georgia GOP vice-chair, was also heavily involved in the firm, including recruiting potential investors on conservative talk radio.

Secretary of State Brad Raffensperger declined an interview request regarding the probe. Frost IV founded First Liberty in 1993, and although the firm has been closed, its repercussions are far-reaching. Following the allegations of the Ponzi scheme, a new lending firm, Heartland Capital, emerged with Frost V at the helm. The investigation into the financial dealings of the Frost family continues, shedding light on the complex web of involvement and connections within the firm.

The situation has left investors reeling, unsure of whether they will be able to recover their investments. The collapse of First Liberty Building & Loan has caused uncertainty and concern among those who trusted the Frost family with their financial assets. As investigations unfold, more details about the alleged fraud scheme and the extent of its impact on investors are likely to emerge.

Despite the ongoing probe and the closure of First Liberty, Frost V has ventured into a new entrepreneurial endeavor with Heartland Capital. The subpoena issued to him indicates the thoroughness of the investigation into the financial dealings of the Frost family. As the legal process unfolds, more information regarding the alleged Ponzi scheme and its aftermath will come to light. The repercussions of the fraud allegations extend beyond the immediate closure of the firm, creating a ripple effect in the financial industry and among investors who have been affected by the scandal.