Earlier today, I read this piece by TPM fave Will Sommer which explained that Hugh Hewitt, one-time Josh antagonist, has been pitching his listeners on giving their money to what might be generously described as a fake bank which promised a totally credible 13% annual return when Hugh’s listeners purchased “First Liberty Notes” for a minimum purchase of $25,000. It was all a way to get out from under the “woke” banking system and build a “patriot economy” and do a lot of other cool stuff. It was all the work of a right-wing darling by the name of Brant Frost IV. Apparently the fake bank, First Liberty Building & Loan (no FDIC insurance), was a key part of the Georgia GOP ecosystem.
In any case, as Will explained, things had taken an unexpected turn — at least for the purchasers of “Liberty Notes” — when the company’s website suddenly disappeared and was replaced with a notice which announced that the owners were cooperating with federal authorities to close the business down. (Doesn’t sound promising!) Now, just a few moments ago, I got an alert about this article in The Atlanta Journal Constitution which reports that the SEC has charged First Liberty with running a $140 million Ponzi scheme.
From the AJC …
The complaint alleges that First Liberty founder Brant Frost IV misappropriated investor funds, making payments to himself and relatives of more than $5 million and used other funds for operations of several affiliated companies, which were also named as defendants in the suit. The SEC said Frost used investor money to make more than $2.4 million in credit card payments, another $335,000 to a rare coin dealer, $230,000 on family vacations at a rental home in Maine and $20,800 for a Patek Philippe watch.
Frost also allegedly used investor money to make more than $570,000 in political donations, the SEC alleges.
