Edwin Frost IV Gets 15 Years for $76 Million Ponzi Scheme
Updated
Updated · The New York Times · Oct 30
Edwin Frost IV Gets 15 Years for $76 Million Ponzi Scheme
2 articles · Updated · The New York Times · Oct 30
Summary
$76.5 million in restitution was ordered as Edwin Brant Frost IV was sentenced to 15 years in federal prison for defrauding more than 300 investors.
Prosecutors said Frost ran the scheme through First Liberty Building and Loan from 2021 to 2025, promising 8% to 18% monthly returns from supposed short-term bridge loans.
When many loans failed, he used new investor money to pay earlier investors instead of disclosing the shortfall, according to the U.S. Attorney's Office.
Federal prosecutors said Frost also diverted at least $5 million for himself, including a Maine vacation rental, more than $140,000 in jewelry and over $335,000 paid to a rare coin dealer.
The Georgia Republican donor, who pleaded guilty to wire fraud in May, must report to a federal prison camp in Alabama by Nov. 30.