The Alabama Securities Commission (ASC) on Monday announced they were opening an inquiry into a recently discovered alleged Ponzi scheme.
Some Alabama politicians said they were returning campaign donations from Georgia-based GOP donor Brant Frost IV, who is accused of operating an alleged Ponzi scheme that defrauded clients of $140 million.
ASC director Amanda Senn announced on Monday that the ASC is aware of recent events developing in Georgia involving First Liberty Building and Loan, LLC, and its owner, Edwin Brant Frost IV.
“We have been in contact with authorities in Alabama and Georgia, and have received numerous requests for information regarding this matter. We have opened an inquiry into the matter and will ensure that the interests of the State of Alabama and its investors are protected. Further public comment by us at this time would be inappropriate,” Senn said.
Alabama Secretary of State Wes Allen said in a statement he is directing any Alabama political entity that accepted contributions involved with the alleged Georgia investment fraud scheme to immediately return those contributions to the court-appointed receiver.
“I take allegations of financial fraud seriously, especially when that fraud bleeds into campaign finance,” Allen said. “I encourage any Alabamians who have been involved to cooperate fully with law enforcement, including the SEC and our Alabama Securities Commission to ensure that the victims who have been misled may be made whole.”
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