Newnan-based First Liberty Building and Loan, a private lending firm operated by the city’s Frost family, has experienced a shocking collapse. Late last week it suspended all payments to investors as it cooperates with investigations by the FBI and state authorities to assess the damage to its clients who are experiencing severe financial losses as the company sorts out its affairs.
Company owner Brant Frost IV and his son Brant Frost V, who is also a prominent Republican donor and activist, said employees will not be taking phone calls or answering email inquiries while the company is under investigation.
A company statement says, “First Liberty has ceased all business operations… (and) will no longer be accepting promissory note investments or bridge loan participations, and it will not be making any new bridge loans. Interest payments on existing promissory notes, bridge loan participation interests, and other investment programs are indefinitely suspended.”
“First Liberty is cooperating with federal authorities as part of an effort to accomplish an orderly wind-up of the business. … First Liberty hopes to provide additional information and updates in the near future regarding the status of the company’s efforts to effectuate an orderly wind-up of the business.”
