‘Georgia’s George Bailey’ Faces 20 Years for Ponzi Scheme
Edwin Brant Frost IV’s Christian reputation helped him solicit more than $140 million from investors.
Well-known Christian conservative businessman Edwin Brant Frost IV could face up to 20 years in prison after pleading guilty to a federal wire fraud charge.
Edwin Brant Frost IV / YouTube screenshot via First Liberty Building & Loan
Prosecutors said Frost, who owned the now-defunct First Liberty Building & Loan in Georgia, orchestrated a “massive, multi-million-dollar Ponzi scheme.”
“Frost abused the trust of his clients, family, and friends by allegedly soliciting investors with promises of sizable returns, while knowing the money raised would instead be used for his personal expenses and to pay early investors to maintain the illusion of profits,” U.S. Attorney Theodore S. Hertzberg said in a statement.
In July 2025, the Securities and Exchange Commission charged Frost, alleging his fraudulent scheme deprived more than 300 investors of at least $140 million.
The scheme began in 2014, when Frost solicited investments to fund short-term business loans and promised returns of 8% to 18%.
By 2021, defaults on some bridge loans left Frost without enough revenue to cover the interest payments to investors. He did not disclose the defaults and instead continued paying investors their interest.
Frost used money from new investors to pay interest owed to earlier investors and misrepresented the stability of bridge loan revenue to those new investors.
Access to MinistryWatch content is free. However, we hope you will support our work with your prayers and financial gifts. To make a donation, click here.
He also diverted some investor funds for personal expenses, including renting a vacation home in Maine for $230,000, buying jewelry for $140,000, contributing $570,000 to political campaigns, and using more than $2 million to pay credit card bills.
Last year, Georgia Secretary of State Brad Raffensperger urged candidates and political committees to return any campaign contributions they received from Frost’s First Liberty Building & Loan, the Frost family, or affiliated entities, according to Fox 5 Atlanta.
Before the allegations surfaced, conservative commentators praised the Frosts. Erick Erickson said he knew them personally, called them “a good Christian family” and “wonderful people.” Hugh Hewitt compared the elder Frost to the main character of “It’s a Wonderful Life,” dubbing him “Georgia’s George Bailey,” according to Christianity Today.
Among the investors caught in the scheme was John Vander Wiele. The Newnan Times-Herald identified him as the owner of a recycling company who invested $25,000 from the sale of some property into First Liberty’s investment offerings. He said he trusted the investment because it was led by “authentic followers of Christ.”
“They told me they were Sunday school teachers and churchgoers,” Vander Wiele told the Newnan Times-Herald. “It was like lending money to your neighbor. You feel good about it because you know where he lives.”
Prosecutors are recommending a sentence of 14 years. Frost could be fined $250,000 — or twice the gain or twice the loss, whichever is greater — though prosecutors have not recommended a particular fine amount.
Under the terms of the plea agreement, Frost will pay full restitution plus interest, to be distributed to all of his victims.
Sentencing is scheduled for August 14.
EDITOR’S NOTE: Why does MinistryWatch report on financial fraud in the church? We report on them because one in three churches will be victimized, according to the Center for the Study of Global Christianity. We also report on them because these crimes have real victims and cost taxpayers and other stakeholders billions of dollars every year. Even small crimes in small churches have huge consequences. We also report on them to remind our readers that they do not have to be victims. There are steps you can take to prevent financial waste, fraud, and abuse in your church or ministry. To find out more, click here.
