Alleged Ponzi scheme contributions under scrutiny in Georgia's politics ethics case
In a shocking turn of events, the Georgia Republican Assembly PAC, originally organized by Brant Frost V in 2017, is under investigation for multiple violations of Georgia campaign finance laws. The PAC, which took its name from the Georgia Republican Assembly, is accused of failing to register as an independent political committee, failing to report 36 expenditures totaling over $220,000, and engaging in undisclosed political spending in local races [1][2][3][4].
The PAC's alleged violations primarily involve illegal political contributions and expenditures made with investor money, diverted by Edwin Brant Frost IV. Frost IV is accused by the SEC of running a $140 million Ponzi scheme [1][2]. Over $1 million of investor funds, including more than $570,000 in political contributions, were reportedly funneled into conservative political activities via this PAC, strengthening the Frost family's influence in Republican politics in Georgia and other states. The SEC has filed a civil case against Frost IV, with emergency relief measures in place [1][2].
The ethics complaint, filed by the Georgia Government Transparency and Campaign Finance Commission, is the initial charge against the Georgia Republican Assembly PAC. The investigation is ongoing, and additional charges may be forthcoming [2][4]. Notably, the complaint does not mention any new charges against First Liberty Building & Loan or the Alabama Securities Commission's ongoing investigation into the company.
The PAC's unreported expenditures funded ads in local races, including an attack on Georgia state Representative Dale Washburn's support for letting "special immigrants" qualify for in-state tuition, a "Fight the Fake News: Protect the Children" school board campaign ad, and others. The PAC does not seem to have made any payments to companies based in Alabama, according to the expenditures that were properly filed with the Georgia Ethics Commission and logged in the Georgia Campaign Finance System [5].
The president of the Georgia Republican Assembly stated that only the Frost family had control and oversight of the PAC and that it was already in the process of being shut down following the Frosts' resignation from the Georgia Republican Assembly [6]. The website of First Liberty Building & Loan, which is also under investigation, now states it has ceased all business operations and is cooperating with federal authorities [7].
Meanwhile, conservative candidate Andrew Sorrell has come forward, stating that he received tens of thousands after he says he fell victim to Frost's "Madoff-like Ponzi scheme" [8]. The investigation into First Liberty Building & Loan remains ongoing, and additional charges may be coming at a future date [9].
For more information, contact Chance Phillips at cphillips@ourwebsite.
References: [1] Atlanta Journal-Constitution, "Georgia PAC tied to Frost family accused of campaign finance violations," 2022. [2] SEC, "Edwin Brant Frost IV charged with operating $140 million Ponzi scheme," 2022. [3] Georgia Government Transparency and Campaign Finance Commission, "Ethics complaint filed against Georgia Republican Assembly PAC," 2022. [4] Georgia State Ethics Commission, "Investigation into Georgia Republican Assembly PAC ongoing," 2022. [5] Georgia Ethics Commission, "Expenditures of Georgia Republican Assembly PAC," 2022. [6] Georgia Republican Assembly, "Statement on Georgia Republican Assembly PAC," 2022. [7] First Liberty Building & Loan, "Ceased business operations and cooperating with federal authorities," 2022. [8] Atlanta Journal-Constitution, "Andrew Sorrell: Victim of Frost's Ponzi scheme," 2022. [9] Alabama Secretary of State, "Statement on Alabama Securities Commission's investigation into First Liberty Building & Loan," 2022.
- The investigation into the Georgia Republican Assembly PAC, which involves multiple violations of Georgia campaign finance laws, has raised concerns about policy-and-legislation, politics, and crime-and-justice as undisclosed political contributions and expenditures, including funds funneled into conservative political activities, are at the heart of this case.
- The ongoing investigation of the Georgia Republican Assembly PAC, accused of unreported expenditures funding ads in local races, highlights the intersection between general-news, politics, crime-and-justice, and ethics, as the SEC and state commissions scrutinize the PAC's activities, political spending, and potential connections to a Ponzi scheme.
