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Georgia Issues $1 Million in Fines, Criminal Referrals in Alleged $140 Million Ponzi Probe

Investigators say recruiters exploited political and religious ties to steer investors into First Liberty.

Overview

  • Secretary of State Brad Raffensperger fined Timothy Nathaniel Darnell $500,000 and referred him to the Cobb County district attorney for possible charges.
  • Officials allege Darnell placed about 45 clients who invested more than $6.6 million in First Liberty and received compensation he failed to disclose.
  • Edwin Brant Frost IV was fined $500,000 and referred to the Coweta County district attorney, with investigators alleging he misled investors who put in over $1 million.
  • Both Darnell and Frost deny the allegations, and Darnell’s attorney says the state rushed to judgment; the emergency orders allow them to seek hearings.
  • Federal authorities have frozen First Liberty’s assets, and the Georgia State Ethics Commission has filed 61 civil charges against the Georgia Republican Assembly PAC and later added the organization as a defendant.