Edwin Brant Frost IV sentenced to 15 years for Ponzi scheme

Edwin Brant Frost IV, the 69-year-old founder of First Liberty Building & Loan, has been sentenced to 15 years in federal prison for orchestrating a massive Ponzi scheme. The scheme, which operated between 2021 and July 2025, defrauded approximately 300 investors out of millions of dollars.

Frost pleaded guilty to wire fraud after promising investors annual returns between 8% and 18%. He claimed funds would be used for bridge loans to small businesses backed by the Small Business Administration, but investigators found that most loans defaulted and investor money was used to pay earlier clients. Prosecutors revealed that Frost diverted at least $5 million for personal use, including luxury jewelry, a vacation home rental, rare coins, and significant political contributions.

In addition to his prison term, Frost was ordered to pay over $76 million in restitution to his victims. Following his sentence, he will serve three years of supervised release. During the sentencing, prosecutors noted that Frost exploited the religious and political convictions of his victims to gain their trust.