A prominent Georgia Republican accused of running a 140 million Ponzi scheme publicly apologized on Friday as a federal judge ordered his assets frozen and appointed a receiver to try to recover cash for investors.
Brant Frost IV said in a statement issued through his lawyers that he "would like to apologize personally to those I have harmed, but I am under restrictions which prevent me from doing so."
"I take full responsibility for my actions and am resolved to spend the rest of my life trying to repay as much as I can to the many people I misled and let down," Frost said in the statement. "I will be cooperating with the receiver and federal authorities and ask that everyone allow the receiver time to sort things out and do his best to repair the damage I created."
The U.S. Securities and Exchange Commission said in a civil lawsuit filed Thursday that First Liberty Building and Loan, controlled by Frost, lied to investors about its business of making high-interest loans to companies. Instead, investigators said that its loans mostly went sour and that it then raised more money to repay earlier investors, while Frost skimmed millions for himself and his family.
The firm's collapse rocked the religious and political networks that fed cash to the business, based in suburban Newnan, southwest of Atlanta. It also could have ramifications in state Republican politics, cutting off funding to the far-right candidates that Frost and his family have favored. Investigators said Frost spent 570,000 from investor funds on political contributions.