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The US Securities and Exchange Commission filed a complaint against Edwin Brent Frost IV of Georgia and his first Liberty Building and Lon, LLC, alleging that the business was operated as a Ponzi scheme.
document It claims that Frost and his company raised at least $ 140 million from about 300 investors through the sale of “loan participation agreements and promissory note, which offered an annual return of 8% to 18%.
“As of 2021, investors were obtained from about 80% interest and major payments from new investor funds, not the bridge loan interest payment or major repayment,” SEC complaint claims.
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US dollar 7 December, 2021, in Istanbul (Through Ozan Kos/AFP Getty Image)
The SEC alleged that Frost spent investor funds in various ways, some of which involved political donations to make more than $ 570,000, buying a watch of $ 20,800 and “paying more than $ 2.4 million for credit cards issued to them and their business institutions.”
associated Press Indicated that Frost is a Republican.
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Elephants, symbol of the Republican Party, in a rug in the lobby of the Republican Party headquarters in Washington. (Brooks Craft through LLC/Corbis Getty Image)
Justin c. Jeffrees said, “The high -rate of return on investment is a red flag that all potential investors should do to think twice or perhaps three times before investing their money.” Press release,
“Unfortunately, we have seen the film before-the worse actor attract investors with the promise of more genery returns-and it does not end well.”
Robins alloy Belinfant Littlefield LLC lawyer Joshua Mayis is representing Frost in the case, and he provided Fox News Digital with a statement by Frost, who admitted that he had misleading people.
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US bill burning in London 8 August 2011 (Tom Stodart/Getty Images)
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“I take full responsibility for my tasks and resolve to try to repay the rest of my life, as I can try to repay the people I can mislead and let down. I will cooperate with the receiver and federal officials and ask that everyone allows the receiver to solve things and I try my best to fix the damage made by me.”
“I would like to personally apologize to those I have harmed, but I am subject to sanctions that prevent me from doing so. While I don’t deserve it, I am grateful to friends and family support because I have faced this situation.”
