Faith-Based, FDIC-Free: The Sudden Implosion of First Liberty Building & Loan
How an 8-to-13 percent “Patriot-economy” promise melted into FBI raids, frozen payments and panicked retirees.
What happened, in three acts
DateEventWhy it mattered2012-2024Father-and-son duo Brant Frost IV & V market “First Liberty Notes” (8-13 % returns) to church groups, GOP circles.No FDIC insurance; money actually funds bridge-loans to local businesses.June 27, 2025Website notice: operations and investor payouts frozen; “cooperating with federal authorities.”Signals liquidity crisis or suspected fraud.July 2, 2025The Citizen reports FBI seizure of records; GA Secretary of State opens civil-securities probe.Confirms a criminal & civil investigation; investors now unsecured creditors.
Red flags most people missed
“Private lender” ≠ regulated bank. No FDIC, no OCC, no routine stress tests.
High returns in a high-rate era. If Treasuries pay 5 %, an 8-13 % “safe” note smells Ponzi-adjacent.
Faith & politics as trust shortcuts. Aligning with conservative Christian branding built credibility that bypassed harder questions.
Who’s at risk, and what to do
Investors
Status: unsecured creditors; likely recovery <40 % unless DOJ claws back personal assets.
Action: file with FBI tip-line (case # listed on official release); gather all note agreements & emails.
Small-biz borrowers
Status: your bridge loan may get called or sold.
Action: keep payments current; request payoff figure in writing before wiring any funds.
Community & donors
Status: local GOP & school-board officials took donations or salaries from First Liberty entities.
Action: demand disclosure and, where appropriate, restitution to campaign accounts.
Bigger-picture takeaways
Regulation gaps: Private lending outfits fall between SEC (if they claim to sell “notes”) and state banking regs.
Affinity fraud’s new uniform: Post-SVB distrust of “woke” banks created fertile ground for “Patriot” finance marketing.
Due-diligence basics still win: Ask for audited financials, verify FDIC/NCUA status, and Google “Form D” filings before cutting a check.
Call to action
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Footnotes & sources
First Liberty Building and Loan collapses — leaving clients in limbo, The Citizen, 2 July 2025.thecitizen.com
GA Secretary of State press statement on civil-securities probe (June 2025).
Interviews with affected investors (Newnan Times-Herald, July 2025).