Alabama Securities Commission Investigates $140 Million Georgia Ponzi Scheme, Political Donations

Alabama officials are investigating the ties between a Georgia-based Ponzi scheme operated by Edwin Brant Frost IV and political contributions within the state. The U.S. Securities and Exchange Commission alleges Frost defrauded about 300 investors of at least $140 million through his company, First Liberty Building & Loan, which promised high returns on short-term loans but operated as a Ponzi scheme. Several Alabama Republicans, including State Representative Benjamin Harrison, State Board of Education member Allen Long, and State Auditor Andrew Sorrell, received contributions from Frost and his associated firms, prompting calls from Alabama Secretary of State Wes Allen for candidates to return the donations to a court-appointed receiver. The Alabama Securities Commission has opened an inquiry to protect the state's investors and is coordinating with authorities in Alabama and Georgia. While the Secretary of State's office oversees campaign finance reporting, it lacks enforcement authority, leaving the Securities Commission to handle the investigation. Frost's political contributions and the scheme's impact on Alabama's political landscape have drawn significant scrutiny amid efforts to ensure victims are compensated and campaign finance integrity is maintained.