Alleged Ponzi Fraudster Fleeces $140,000,000 From 300 Investors After Loan Business Collapse: SEC

The US Securities and Trade Fee (SEC) says {that a} Georgia man reportedly cheated 300 traders in a Ponzi scheme after his mortgage actions fell aside.

In a brand new press launch, the Secwin Brant Frost IV and his firm, First Liberty Constructing & Mortgage, accuses the operating of a Ponzi scheme by deceptive funds and deceptive traders.

In line with the authorities, between 2014 and June 2025, the corporate operated by traders of traders and mortgage participation agreements with returns as much as 18% for short-term loans to firms at excessive rates of interest that not often fail. Frost and his firm would have assured traders that the loans in default could be reimbursed by debtors utilizing funds from the Small Enterprise Administration or different industrial lenders.

However since 2021, Frost is alleged to have carried out First Liberty Constructing & Mortgage as a Ponzi schedule after many of the loans have been in default. The SEC accuses Frost of the usage of new investor capital to make predominant and curiosity funds to present traders.

The criticism additionally claims that Frost abused the funds for private use, reminiscent of shopping for uncommon cash, paying off private money owed and happening vacation. The SEC accuses Frost and First Liberty Constructing & Mortgage of the chief of 300 traders for an quantity of $ 140 million.

Says Justin C. Jeffries, related director of enforcement for the Regional Workplace of the SEC,

“The promise of a excessive return on an funding is a crimson flag that each one potential traders must assume twice or perhaps even 3 times earlier than they make investments their cash. Sadly we have now seen this movie beforehand seen-strict actors with guarantees of apparently beneficiant returns and it doesn’t finish nicely.”

In an announcement to FOX Information, Frost admits his involvement and misconduct within the schedule and says he’ll collaborate with researchers.

“I take full duty for my actions and am decided to spend the remainder of my life again as a lot as attainable to the many individuals I’ve misled and disenchanted. I’ll collaborate with the recipient and federal authorities and ask that everybody has the recipient the time to seek out issues and do his greatest to restore the injury I’ve made.”

Comply with us on X, Fb and Telegram

Do not miss a beat – Subscribe to get e -mail notifications on to your inbox

Examine value promotion

Surf the Day by day Hodl -Combine

Featured picture: Shutterstock/Zapp2Photo