ATLANTA – The son of the owner and president of a financial institution that is the subject of a federal lawsuit and a state investigation has resigned from the Georgia Republican State Committee effective immediately.
Brant Frost V also has informed state GOP Chairman Josh McKoon that he will be resigning as chairman of the Coweta County Republican Party, McKoon said Friday.
The U.S. Securities and Exchange Commission sued First Liberty Building and Loan last month alleging it had operated as a Ponzi scheme, bilking investors.
The complaint in U.S. District Court for the Northern District of Georgia said Edwin Brant Frost IV, used investor funds to make more than $570,000 in political donations. First Liberty raised at least $140 million from about 300 investors, and the lawsuit said Frost also used their money to pay himself and his family at least $5 million.
Georgia Secretary of State Brad Raffensperger launched an investigation this week after calling on politicians to return any political contributions from First Liberty or the Frost family, which has been active in state Republican politics.
In a statement issued Friday, McKoon said the voluntary resignations will allow Brant Frost V to focus on his family and upcoming birth of his first child.
“We in no way consider his resignations as an indication of guilt in the pending legal issues of First Liberty Building and Loan,” McKoon said. “We continue to stand with those who have suffered financial losses and hope for the speedy and full return of their investments.”
An election to choose Frost’s successor with the Coweta County Republican Party will be held within the next 30 days.