According to Securities and Exchange Commission allegations and reporting in The Citizen, First Liberty in Newnan is accused of operating a Ponzi scheme over several years, and people who are our friends, neighbors, and colleagues became victims, and in light of this I’d like to compare my own investing journey, the luck I had along the way, and lessons I learned that could have prevented First Liberty investors from becoming victims. The Citizen staff already interviewed a local professional investment advisor that was published on September 22, 2025, but I want to give my perspective as a layperson.
I’ve read all First Liberty reporting in The Citizen because of my ongoing interest in failures and their causes. Early in my career, I did failure analysis on electronic components to seek out causes and preventive measures, and this expanded into an interest in plane and train crashes as well as financial disasters such as the Enron debacle of the early 2000’s and the collapse of the mortgage-backed securities market that precipitated the Great Recession. We humans can do amazing, wondrous things, but we can make a huge mess, too.
It is important to note that while the Securities and Exchange Commission has charged Mr. Edwin Brant Frost IV, he has not been indicted or convicted of any crime, but at the end of an investigation into multi-million dollar Ponzi scheme that cheated hundreds of investors, it would not be surprising if prosecutors pursue criminal charges against Mr. Frost, and quite possibly his son, Mr. Edwin Brant Frost V, as he was both an employee of First Liberty and son of the owner.
Before diving into my investing journey, it’s necessary to state that one of the biggest reasons First Liberty was able to attract clients is because they leaned into their Christian faith and used it to demonstrate their trustworthiness. They also used a hallmark of conservative Christianity, namely, the personal testimonial, which in a religious setting is great- nothing is more important than actual proof, and the clients they attracted would be familiar with this practice.
Until the evidence is sorted out, we won’t know if First Liberty management believed they could get up to the 18% returns they promised or were just lying. I’m also supportive of Mr. Neil Sullivan’s synopsis that this was not a Republican Party issue– there are plenty of shady dealers of all political affiliations. That’s not whataboutism; that’s the truth.
While it’s uncomfortable to acknowledge, some of the fallout from this scheme reflects broader challenges in investor awareness. I’ll offer constructive solutions below, and I don’t intend to sound like the “I told you so” voice, but in a society that values personal freedom, informed decision-making is essential. Regulations can help, but they’re no substitute for a financially literate public. I often hear concerns about the “nanny state,” and I share the desire for individual autonomy. Yet it’s inconsistent to demand protection after the fact when many Americans struggle with basic financial concepts. Ironically, some are skilled at earning money but much less equipped to invest it wisely. That tension is part of the journey I’ll explore next- going from simply being lucky to being literate.
In 2010 after having worked professionally and saved for 15 years, I looked at my 401k statement with dismay and wondered if I’d ever be able to retire. I’ve always been a good saver, but the amount on the statement wouldn’t last long. I knew enough when I started that I needed to invest aggressively in stock funds and had amateurishly selected a diversified portfolio. I didn’t know much more than to save and invest aggressively, but it was pretty hard to mess up because my employer had selected a good group of funds- fulfilling their fiduciary duty- so I was lucky.
In addition to the main 401k, I had an old 401k from a previous employer that just sat for several years, not an uncommon occurrence, and I finally decided to do something with it in the mid-2010s. I needed an advisor, and given I didn’t know anything about them, my main criteria was a national organization that served people across the US that also has a “moral compass.” I reasoned a national organization with lots of members and a high profile would always be under some kind of scrutiny. As for the moral compass requirement, the financial service industry has never had a squeaky-clean reputation so I selected an organization that had been affiliated with a large national Christian denomination. As a practicing Buddhist, I have deep, fundamental respect for all serious religious practitioners. Ultimately, I found a good advisor, again, being lucky.
By early 2021 my 401k balance was large enough that started paying attention to it- maybe I can retire some day! Diligent saving and compound interest really works! I started reading books, many of which I borrowed from the Peachtree City Public Library using the PINES network (shoutout here to another great civic service), and the ones I preferred laid out a simple, build wealth slowly approach, which I’d seen work.
Had First Liberty investors been exposed to even a single solid resource on investing, many would have recognized the promised returns in no way could be low risk.
A basic investing book will tell you the risk-free rate of return is roughly equivalent to an FDIC-insured bank savings account that pays a competitive interest rate, currently about 4%. Anything above this has risk, meaning potential for loss of what you invest. For First Liberty to have promised 9%, 13%, 18%, or whatever as low risk was more than deceptive.
Below are some solutions, both short term and long term, that could have prevented the First Liberty problem, and please note that more regulation is not one of them.
A solid first step is to place an injunction on Mr. Edwin Brant Frost V from owning, managing, or participating in any business related to investing or banking unless he is in a heavily supervised role, such as mortgage origination at an established bank, not his own new firm, while his culpability in the First Liberty scheme is sorted out. Given the size of the firm, his role, and familial relationship, some observers may question how much he knew, and only the investigation will clarify this.
Per reporting in The Citizen, Mr. Frost has apparently filed paperwork to incorporate a new firm in Newnan that will operate as a mortgage and non-mortgage loan brokerage firm, or maybe he’ll run an insurance business. Given his former employer’s track record, finding clients will be hard, and even if no legal charges are brought, some of the First Liberty victims may make it their personal mission to constantly point out his association with a Ponzi scheme in Google reviews and other social media for the rest of his working life. I imagine more than a few victims will follow every move he makes- if I lost $1.3 million the way Mr. James McMaster claims he did, I know I would. Given recent vitriol in The Citizen’s comment section, Mr. Frost is still clearly in the spotlight.
A second step is for every high school to offer a class on investing and use an evidence-based approach with a bias to broadly diversified investments such as index mutual funds and discouragement of active individual stock trading. It looks like McIntosh High School already offers a financial literacy class so kudos to them, but it seems very few students take the class.
The third solution is for those interested to start a local civic club on financial decision making such as a Bogleheads Chapter and read The Bogleheads’ Guide to Investing, which contains the wisdom of John C. Bogle, founder of Vanguard, who arguably has done more than anyone else to help Americans learn how to invest and keep money in their pockets- on the order of trillions of dollars. Given that First Liberty appealed to a shared Christian faith, churches could have a standing book club, which would tie into their mission of Christian stewardship and tithing. Those who’ve been given much have a responsibility to be wise with it.
A fourth solution is for employers to offer more in the way of employee financial literacy. The 401k and similar accounts have been a huge gift to the American worker, and very few employees maximize the benefits. Many companies’ investment committees do a good job as fiduciaries in selecting solid investment choices but don’t take the second step in helping them learn how to invest.
I’ve been lucky in my investing journey, and I could have stumbled onto First Liberty and been a victim, too, but as my nest egg grew, I educated myself using readily available resources. The solution to First Liberty is not more regulation as we Americans need to take responsibility for our lives, financial or otherwise. I’m advocating for widely available financial literacy training for students and working-age adults held in schools, workplaces, or churches that cover investing in a realistic way and for people to educate themselves.
