‘Right thing to do.’ Columbus state representative returns campaign contribution
One Columbus area state representative returned a campaign contribution before the Georgia secretary of state urged any political entity to return donations from a Newnan-based business and its founding family after an alleged Ponzi scheme was run through the business.
A news release Thursday from the U.S. Securities and Exchange Commission said it filed charges and sought an asset freeze and other emergency relief against First Liberty Building & Loan LLC and its founder/owner Edwin Brant Frost IV in connection with a $140 million Ponzi scheme.
“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,” Georgia Secretary of State Brad Raffensperger said in a news release Monday. “Ill-gotten gains do not belong in the State Capitol.”
Georgia District 139 Representative Carmen Rice (R-Columbus), former chairwoman of the Muscogee County Republican Party, is among the politicians to receive a contribution from a Frost family member. She received a $250 contribution in a 2024 special election from a “Brant Frost” with a Newnan address, according to a campaign contribution disclosure report.
The same name and address also is associated with a donation to District 81 Representative Noelle Kahaian, which listed the contributor’s employer as First Liberty Building & Loan and their occupation as “financial manager,” according to a campaign contribution disclosure report.
Details about the Ponzi scheme
“According to the SEC’s complaint, from approximately 2014 through June 2025, First Liberty and Frost offered and sold to retail investors promissory notes and loan participation agreements that offered returns of up to 18% by representing that investor funds would be used to make short-term bridge loans to businesses at relatively high interest rates,” the SEC release says.
The release says the SEC’s complaint alleges some investor funds were used to make bridge loans, but the loans did not perform as represented, with most loans ultimately defaulting and ceasing to make interest payments.
First Liberty operated as a Ponzi scheme from at least 2021 using new investor funds to make payments to existing investors, according to the SEC news release.
The SEC defines a Ponzi scheme as “an investment fraud that pays existing investors with funds collected from new investors. Ponzi scheme organizers often promise to invest your money and generate high returns with little or no risk. But in many Ponzi schemes, the fraudsters do not invest the money. Instead, they use it to pay those who invested earlier and may keep some for themselves.”
The Associated Press reported that investigators said Frost spent $570,000 from investor funds on political contributions.
The AP reported Frost IV said in a statement through his lawyers, “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. 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.”
Rice’s response
In an email Tuesday to the Ledger-Enquirer from Rice’s spokesperson, Kim Drew, Rice said, “On April 18, 2024, I received an unsolicited donation of $250.00 from Brant Frost V (via credit card). This donation was returned in full via the method in which it was received (digital donation via website) on Friday, July 11, 2025.
“On July 15, 2025, it was confirmed by my bank that the transaction was complete and the money was returned.
“I have been in touch with Gregory Hays, Hays Consulting, the assigned receiver, and I have both spoken to him on the phone and followed up via email with all returned transaction documentation.
“Prior to any call from any elected official to return the funds, we did so, as it was the right thing to do.”
Asked to explain further, Drew added, “Given the prominence of the Frost family in the Republican third district of Georgia, the unsolicited donation made in April 2024 came to mind once news broke late last week. Once the news was confirmed, Representative Rice immediately initiated the return of the donation, well before state elected officials called for that action. This is the level of ethical behavior we see from Representative Rice daily.”
AP reported Brant V, son of Brant IV, is chairman of the Coweta County Republican Party and former second vice-chair of the state Republican Party.
This story was originally published July 15, 2025 at 2:32 PM.