On July 10, 2025, the SEC announced that it filed charges seeking an asset freeze and other emergency relief against Georgia-based First Liberty Building & Loan, LLC (First Liberty) and its founder and owner, Edwin Brant Frost IV (Frost), in connection with a Ponzi scheme that defrauded approximately 300 investors of at least $140 million.

According to the SEC’s complaint, from approximately 2014 through June 2025, First Liberty and Frost offered and sold to retail investors promissory notes and loan participation agreements that offered returns of up to 18% by representing that investor funds would be used to make short-term bridge loans to businesses at relatively high interest rates.

Allegedly, the defendants told investors that very few of these loans had defaulted and that they would be repaid by borrowers via Small Business Administration or other commercial loans. The SEC’s complaint also alleges that, while some investor funds were used to make bridge loans, those loans did not perform as represented, and most loans ultimately defaulted and ceased making interest payments.

Since at least 2021, First Liberty, according to the SEC’s complaint, operated as a Ponzi scheme by using new investor funds to make principal and interest payments to existing investors. Allegedly, Frost misappropriated investor funds for personal use, including by using investor funds to make over $2.4 million in credit card payments, paying more than $335,000 to a rare coin dealer, and spending $230,000 on family vacations.

Source: SEC.gov

About Kehoe Law Firm, P.C.

Kehoe Law Firm, P.C. is a nationally recognized, plaintiff-side class action firm dedicated to protecting investors and consumers from fraud and misconduct. Our attorneys have served as Lead or Co-Lead Counsel in major securities cases, recovering over $10 billion for institutional and individual investors.

Our firm litigates securities fraud, fiduciary breaches, unfair mergers and acquisitions, and antitrust violations, while also representing whistleblowers and advocating for victims of data breaches, consumer fraud, vehicle and product defects, employment law violations, retirement plan mismanagement, and other corporate and business misconduct. With a results-driven approach, we pursue justice and substantial recoveries for those we represent.

Kehoe Law Firm’s class action legal services are provided on a contingency-fee basis, meaning clients are not responsible for any fees or litigation expenses.

PHONE

Tel: 215-792-6676

EMAIL

[email protected]

Kehoe Law Firm, P.C. is informing Washington State residents that if you’ve received unsolicited text messages, you may be protected under Washington’s strict privacy laws. In fact, the state’s anti-spam law makes it illegal to send unsolicited commercial text messages if the message is sent:

• To a telephone number assigned to a Washington resident for a cellular telephone; and
• From a person conducting business in Washington state.

But it is not illegal if:

• The message is sent by the subscriber’s cellphone carrier, unless the subscriber has indicated he or she is not willing to receive further commercial text messages from the cellphone carrier; or
• The recipient has clearly and affirmatively consented in advance to receive the commercial electronic text messages from the sender.

Under Washington State’s anti-spam law, known as the Commercial Electronic Mail Act, a person who receives illegal, unsolicited commercial text messages may bring a civil action to enjoin further violations and seek up to $500 per violation, or actual damages, whichever is greater.

Source: Washington State, Office of the Attorney General & CEMA

Are You a Washington State Resident Who Has Received Illegal, Unsolicited Commercial “Spam” Text Messages?

If so, you may have legal claims and are encouraged to contact Michael Yarnoff, Esq., (215) 792-6676, Ext. 804, [email protected], [email protected], for a free, no-obligation legal evaluation.

About Kehoe Law Firm, P.C.

Kehoe Law Firm, P.C. is a nationally recognized, plaintiff-side class action firm dedicated to protecting investors and consumers from fraud and misconduct. Our attorneys have served as Lead or Co-Lead Counsel in major securities cases, recovering over $10 billion for institutional and individual investors.

Our firm litigates securities fraud, fiduciary breaches, unfair mergers and acquisitions, and antitrust violations, while also representing whistleblowers and advocating for victims of data breaches, consumer fraud, vehicle and product defects, employment law violations, retirement plan mismanagement, and other corporate and business misconduct. With a results-driven approach, we pursue justice and substantial recoveries for those we represent.

Kehoe Law Firm’s class action legal services are provided on a contingency-fee basis, meaning clients are not responsible for any fees or litigation expenses.

PHONE

Tel: 215-792-6676

EMAIL

[email protected]

Kehoe Law Firm, P.C. reminds investors that the SEC has warned about fraudsters who often impersonate legitimate organizations or individuals to carry out scams. These wrongdoers may pose as government agencies, employees, or credible investment professionals such as brokers or investment advisers.

Such impersonators may be involved in advance fee scams, or they may use personal information to commit identity theft or misappropriate financial assets.

To learn more about these types of scams, including how to recognize and avoid them, please visit Impersonation Schemes. 

Source: Investor.gov

About Kehoe Law Firm, P.C.

Kehoe Law Firm, P.C. is a nationally recognized, plaintiff-side class action firm dedicated to protecting investors and consumers from fraud and misconduct. Our attorneys have served as Lead or Co-Lead Counsel in major securities cases, recovering over $10 billion for institutional and individual investors.

Our firm litigates securities fraud, fiduciary breaches, unfair mergers and acquisitions, and antitrust violations, while also representing whistleblowers and advocating for victims of data breaches, consumer fraud, vehicle and product defects, employment law violations, retirement plan mismanagement, and other corporate and business misconduct. With a results-driven approach, we pursue justice and substantial recoveries for those we represent.

Kehoe Law Firm’s class action legal services are provided on a contingency-fee basis, meaning clients are not responsible for any fees or litigation expenses.

PHONE

Tel: 215-792-6676

EMAIL

[email protected]