Alabama GOP officials grapple with donations from investor now charged in $140M Ponzi scheme.
By SPEAKIN’ OUT NEWS
MONTGOMERY, Ala. — A Georgia investor now accused of orchestrating a $140 million Ponzi scheme allegedly donated at least $132,000 to Republican lawmakers in Alabama, raising awkward questions about political donations that may have originated from defrauded investors.
The Securities and Exchange Commission says Edwin Brant Frost IV, president of First Liberty Building & Loan, misappropriated investor funds to finance personal expenses and campaign contributions.
Campaign filings show Frost and associated entities donated at least $71,000 to State Auditor Andrew Sorrell and his PAC, Alabama Christian Citizens, with a $29,000 loan made from Sorrell’s PAC to Frost’s company in April 2024. Legislators Ben Harrison (R-Elkmont) and Allen Long (State Board of Education) also received donations.
When reached, Frost’s attorney stated:
“Mr. Frost has no comment on this matter”.
The SEC claims Frost used $570,000 from the scheme on political donations and personal expenses. A civil suit filed July 10 is ongoing.
Some Alabama GOP figures are seeking to return or redirect the funds after the allegations surfaced.