ATLANTA — The Georgia Republican Party has returned money contributed by a family associated with a financial institution that the federal government alleged was a Ponzi scheme.
Saying he was not obliged to return the money but felt it was a “moral duty,” state GOP Chairman Josh McKoon announced Tuesday that the party had delivered $36,844 to the court-appointed receiver for First Liberty Building & Loan.
The U.S. Securities and Exchange Commission alleged in federal court two weeks ago that the Georgia company had bilked investors and that its owner and president, Brant Frost IV, had paid himself and his family $5 million while making $570,000 in political contributions.
Last week, Secretary of State Brad Raffensperger, a Republican, called on politicians to return any money received from First Liberty or Frost and his family.
McKoon said he followed the court receiver’s suggestion to return all such contributions that the party had received since the beginning of 2021.
Frost and his family are well-known in GOP circles. His son, Brant Frost V, is chairman of the Coweta County Republican Party.
“I am profoundly saddened that members of our conservative movement, along with many others, were misled by false promises of safe investments,” McKoon said. “This has left countless Georgians facing uncertain futures and financial distress.”