Our Broker Misconduct Attorneys Can Explore Your Legal Options With You

The Securities and Exchange Commission (SEC) and federal prosecutors charged First Liberty Building & Loan owner Edwin Brant Frost IV with operating a $140 million Ponzi scheme that targeted hundreds of retail investors with promises of high-return, low-risk loans. Law firm Shepherd Smith Edwards and Kantas is actively investigating financial firms and brokers who sold these investments without proper supervision, helping victims explore legal options like FINRA arbitration to recover their losses.

Shepherd Smith Edwards and Kantas Broker Misconduct Attorneys (investorlawyers.com) are investigating claims of losses related to First Liberty Building & Loan. Last year, the US Securities and Exchange Commission (SEC) filed charges accusing the Georgia-based lender and owner Edwin Brant Frost IV of running a $140M Ponzi scam.

In a parallel criminal case, Frost has pleaded guilty to wire fraud and is looking at up to two decades behind bars. He allegedly used investor funds to make political donations and to fund his lavish lifestyle. For hundreds of investors, however, his sentencing won’t bring back their money.

What Was The First Liberty Building & Loan Ponzi Fraud?

• Investors were led to believe that First Liberty-issued promissory notes and loan participation deals touted returns of up to 18%.
• They were told their money would be used for short-term bridge loans to businesses at high interest rates.
• A lot of these bridge loans were in default.
• They were promised low-risk, high returns. Instead, new investors’ money was used to pay earlier investors.
• Like all Ponzi scams, this one involving First Liberty Building & Loan went on to fail.

Who Were The Investors That Suffered Losses in First Liberty Building & Loan?

These loan deals and promissory notes were marketed to retail investors, including seniors, in at least 10 US states. At least 300 investors were involved.

I’m A First Liberty Building & Loan Ponzi Scam Victim. How Can I Get My Money Back?

If your broker sold you First Liberty Building and Loan as a viable investment, you may be able to sue them for damages. Already, Bankers Life Securities and Bankers Life Advisory Services have agreed to pay $6.7M to investors who worked with ex-broker Timothy Nathaniel Darnell. The firms contend they had no idea that their Atlanta financial advisor was marketing this investment to more than 45 customers. This is known as selling away, and the brokerage firm and investment adviser were held liable for allegedly failing to supervise him. Five pending customer disputes related to the First Liberty Building & Loan Ponzi scam are noted on Darnell’s BrokerCheck CRD.

Shepherd Smith Edwards and Kantas is investigating Bankers Life Securities and Bankers Life Advisory Services, as well as the other financial firms that may have exposed investors to the First Liberty Building & Loan Ponzi fraud.

You may have grounds for suing your broker in FINRA arbitration over:

• Due diligence failures
• Selling away
• Failure to supervise
• Unsuitability
• Misrepresentations and omissions
• Negligence
• Gross negligence
• And more.

Why Hire Shepherd Smith Edwards and Kantas Broker Misconduct Attorneys To Represent You In Your First Liberty Building and Loan Investor Lawsuit?

• We are skilled securities lawyers who work with investors all over the United States.
• Our investment loss recovery law firm is experienced in winning awards and negotiating settlements for investors.
• You want to work with a knowledgeable securities law team that genuinely cares about making you financially whole again while protecting your legal rights.

Find Out if You Have Grounds For An Investor Lawsuit Today

Call (800) 259-9010 or contact us online.