The public reaction to the meltdown of a financial institution connected to Republican politics in Georgia continued Monday as Secretary of State Brad Raffensperger called on campaign finance recipients to return any contributions from First Liberty Building and Loan or the family that controlled it.
“Now is the time for every elected official, candidate, or political action committee who received financial support from this entity currently under investigation to stand up and help the victims,” Raffensperger said. “Ill-gotten gains do not belong in the State Capitol.”
The federal Securities and Exchange Commission sued the institution last week alleging it had operated as a Ponzi scheme, bilking investors.
The complaint in U.S. District Court for the Northern District of Georgia said Edwin Brant Frost IV, owner and president of First Liberty, used investor funds to make more than $570,000 in political donations.
The company raised at least $140 million from about 300 investors, telling them that their money would go toward short-term, high-interest, small business loans, the lawsuit said. Frost, who is also a named defendant, misrepresented the success of the loan program to his investors, the suit said, noting that he also used their money to pay himself and his family at least $5 million.
Frost’s son, Brant Frost V, is chairman of the Coweta County Republican Party.
“We take allegations of financial fraud seriously, especially when it puts hardworking Georgians at risk,” Raffensperger said, urging anyone who lost money in a transaction with First Liberty to contact his office immediately. “If you believe you’ve been misled or victimized by First Liberty, we need to hear from you.”
How to Read and Understand the News
Truth doesn’t bend because we dislike it.
Facts don’t vanish when they make us uncomfortable.
Events happen whether we accept them or not.
Good reporting challenges us. The press isn’t choosing sides — it’s relaying what official, verified sources say. Blaming reporters for bad news is like blaming a thermometer for a fever.
Americans have a history of misunderstanding simple things. In the 1980s, A&W rolled out a 1/3-pound burger to compete with McDonald’s Quarter Pounder. It failed because too many people thought 1/3 was smaller than 1/4. If we can botch basic math, we can certainly misread the news.
Before dismissing a story, ask yourself:
- What evidence backs this?
- Am I reacting to facts or feelings?
- What would change my mind?
- Am I just shooting the messenger?
And one more: Am I assuming bias just because I don’t like the story?
Smart news consumers seek truth, not comfort.
Ty Tagami | Capitol Beat
Ty Tagami is a staff writer for Capitol Beat News Service. He is a journalist with over 20 years experience.
