A federal receiver is actively pursuing the recovery of $140 million lost in an alleged Ponzi scheme that provided financial benefits to some leading Republicans in Georgia and Alabama. This pursuit involves reclaiming funds, including almost 1,000 political donations amounting to more than $1 million, which predominantly supported far-right Republican insurgents.
Notably, some of the same politicians who benefited claim to have incurred losses, but many of the victims are ordinary conservative investors lured by talk show hosts who marketed the scheme as an investment opportunity for Christians and โAmerica First MAGA patriots.โ
Michael Tinney, a 59-year-old real estate broker from Cedartown, Georgia, deposited $600,000 into the scheme, influenced by promotions from conservatives like Erick Erickson, Hugh Hewitt, and Charlie Kirk. First Liberty Building & Loan had promised returns of up to 16% by offering high-interest loans to businesses. However, according to a U.S. Securities and Exchange Commission lawsuit, Brant Frost IV misappropriated $17 million for personal gain and lent additional millions that were never repaid.
Tinneyโs investment was secured after a visit from Brant Frost V, son of Brant Frost IV, who stated in 2024 that a diverse group, including retired professionals and ministers, were part of the scheme. Currently, their assets consist of just $1.2 million in cash and some family-owned real estate.
Receiver S. Gregory Hays is attempting to foreclose on pledged collateral, including a failed South Carolina factory, and plans to auction Frostโs Aston Martin sports car. Despite these efforts, Hays doubts full recovery is possible, indicating investors may face significant financial losses.
Georgia and Alabama have initiated their own investigations, with Georgia Secretary of State Brad Raffensperger urging that political contributions be returned. So far, $110,000 has been reclaimed along with a $20,000 charitable donation. On July 11, Frost accepted โfull responsibility,โ expressing his commitment to repaying misled individuals, though no criminal charges have been pursued, and Frost relatives still hold positions within the Georgia Republican Party.
First Liberty and the Frost family made widespread contributions to Republican causes, with over $700,000 in Georgia, $150,000 in Alabama, and nearly $140,000 in Maine. Some prominent beneficiaries and party members, like former party chairman David Shafer, faced backlash as efforts to recuperate funds continue. Shafer, now embroiled in legal issues related to attempts to overturn the 2020 election, also claims losses from the scheme.
In Alabama, state Auditor Andrew Sorrell and a political action committee under his control also reported financial setbacks. Despite personal losses, Sorrellโs campaigns benefited from $55,000 in contributions.
Conservative talk show pundits endorsed First Liberty, with figures like Erick Erickson praising the Frosts. John Fredericks, during a June 2024 interview with Brant Frost V, highlighted the financial support of the Frost family for โAmerica First MAGA patriots.โ Michael Tinney, reflecting on the endorsements from these hosts, is still waiting for acknowledgment of wrongdoing amidst growing scrutiny.
Brant Frost V recently stepped down from several political roles following ethical complaints, though family members continue to maintain influential positions within the party. Internal disputes within the party have escalated, with allegations of misconduct and demands for accountability from various party factions.
Michael Tinney, alongside other disillusioned investors, now seeks justice, wanting accountability for the extensive financial mismanagement by those involved.