The founder of Georgia-based First Liberty Building & Loan, Edwin Brant Frost IV, has taken a guilty plea in a $140 million Ponzi scheme.
Frost admitted to a single count of felony wire fraud tied to the misuse of investor funds.
In its heyday, First Liberty marketed itself on right-wing media as part of the “patriot economy.”
Frost went on YouTube to market the company as a pro-Christian company that could offer bridge loans and pay 8% to 13% on investments.
The U.S. Securities and Exchange Commission accused First Liberty and its founder of defrauding at least 300 investors.
Federal investigators said Frost used investor funds for personal luxury spending, including political contributions, jewelry, and rare coins.
The charge carries a maximum sentence of 20 years, with prosecutors recommending a 14-year sentence. Sentencing has been scheduled for Aug. 24.