First Liberty Fraud: What You Need To Know and How We Can Help

• August 18, 2025
• First Liberty Building & Loan

Investors in First Liberty Building & Loan, LLC (“First Liberty”) face potentially devastating losses after the company and its founder, Edwin Frost, were charged by the SEC with securities fraud. The alleged scheme involved misrepresented bridge loans and promissory notes, costing investors millions and leaving many at risk of losing their entire investment. 

At Wolper Law Firm, our attorneys are committed to investigating cases of financial fraud and can help those harmed in the First Liberty fraud case explore all possible avenues for recovering their lost funds.

First Liberty Fraud: At a Glance

An SEC complaint was filed in response to a financial fraud that allegedly took place between 2014 and 2025. The defendants named in the claim are a Georgia resident, Edwin Brant Frost IV, and the business he founded, First Liberty Building & Loan. 

According to the complaint, the defendants sold bridge loans and promissory notes that were misrepresented as legitimate, high-yield investments. The complaint further alleges that Frost misappropriated investor money to make over $2.4 million in credit card payments, purchase $335,000 in rare coins, and spend $230,000 on family vacations.

What Happened with First Liberty Building & Loan, LLC?

According to the SEC, between 2014 and 2025, First Liberty and Edwin Frost raised $140 million from approximately 300 investors across the country by selling loan participation agreements and promissory notes that offered investment returns, ranging from 8% to 18%. These loans were represented to be funding for “short-term” bridge loans to small businesses with high interest rates. In some instances, these loans were said to be backed by the Small Business Administration. 

Initially, First Liberty and Edwin Frost limited the sale of the loan participation agreements and promissory notes to “friends and family.” However, beginning in 2024, they engaged in general solicitation efforts to offer the investment opportunity to the public. The SEC has alleged that Edwin Frost knowingly misrepresented the nature and success of the bridge loans and further represented that they had never experienced a default. In reality, many of the bridge loans were in default, which compromised the asset pool that could be used to repay investors.

Upon information and belief, Edwin Frost and First Liberty utilized a network of registered and unregistered sales agents to sell promissory notes and loan participation agreements to retail securities investors. The promissory notes and loan participation agreements were illusory in that the so-called investment returns were nothing more than capital raised from other investors. It is alleged that, by 2021, First Liberty was operating as a Ponzi scheme with approximately 80% of interest and principal payments to investors being made from new investor funds. As additional bridge loans went into default, the ability to legitimately repay investors was further compromised. It is now believed that a significant portion of the $140 million raised has been completely lost.

Warning Signs for Investors

The First Liberty fraud situation is a stark reminder of the risks that investors face. It can be difficult to spot fraud, and even harder at times to admit when you have been taken advantage of by someone whom you trusted. However, there are red flags that can help you identify fraud before it goes too far. Some of the common warning signs for investors include: 

• Time pressure
• Lack of transparency
• Promises of high returns, or “zero risk” opportunities
• Unlicensed financial advisors or unregistered securities
• Being asked to pay via crypto, wire transfer, cash, or other unusual means.

What Legal Options Do Defrauded Investors Have?

While an SEC investigation can bring fraud to light, federal investigators are primarily focused on shutting down scams and may not always provide compensation to individual investors. The good news is that victims of the First Liberty Ponzi scheme and scams like it may still have options for recovering their lost funds.

When you work with a financial fraud attorney at Wolper Law Firm, we will help you explore whether you can pursue recovery through a FINRA arbitration case or securities litigation. 

In a FINRA arbitration case, you may be able to win compensatory damages, pre-judgment interest, and even an amount to account for your trading losses. This can help you receive funds not only for your misspent investment but also what you ought to have received had your money been invested properly. 

Through a securities fraud lawsuit, our financial fraud attorneys may be able to win you:

• Out-of-pocket damages for actual losses incurred
• Lost business damages for opportunities lost due to the fraud
• Reputational damages for harm to your reputation caused by the fraudulent activities

If You Invested in First Liberty Promissory Notes or Loan Agreements, Wolper Law Firm Can Help

Wolper Law Firm is committed to helping investors pursue recovery through all avenues possible. Our firm has experience with many different types of financial fraud and is a dedicated advocate for your interests as an investor. We have assisted with cases involving Ponzi schemes, promissory note scams, securities misrepresentation, and more. 

Wolper Law Firm offers free consultations. If you invested in First Liberty and lost money due to misrepresentation, contact us today to see how we may be able to help. We operate on a contingency fee, meaning you do not pay for our services until we win.