On Monday, Alabama Securities Commission Director Amanda Senn announced that the ASC has opened an inquiry into an alleged Georgia-based Ponzi scheme, which made significant contributions to a number of Alabama Republicans.
“We have been in contact with authorities in Alabama and Georgia, and have received numerous requests for information regarding this matter,” Senn said in an official statement. “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.”
The alleged scheme helmed by Georgia investor Edwin Brant Frost IV gathered at least $140 million through fraudulent means from 2014 to 2025, according to a suit filed by the U.S. Securities and Exchange Commission, SEC.
The scheme allegedly involved around 300 investors, including several prominent Alabama Republicans. State Representative Benjamin Harrison, R-Elkmont; Alabama State Board of Education member Allen Long, R-Florence; and Alabama State Auditor Andrew Sorrell are among those who received funds from Frost and his associated investment firms. Additionally, campaign finance records reveal that Frost, members of his family and associated businesses contributed at least $132,000 to Alabama politicians and political action committees.
Federal campaign finance records also indicate that Frost’s companies made $4,575 in contributions to former U.S. Representative Mo Brooks, R-Alabama, for his failed U.S. Senate run in 2022, and that U.S. Representative Barry Moore, R-Alabama, received $3,300 from the investor’s firms.
According to the SEC, Frost offered investors the opportunity to participate in short-term, high-interest loans to small businesses which he advertised as having annual returns of eight to 18 percent. However, the commission alleges that Frost actually used money from new investors to pay old investors their promised returns while using the bulk of the funds to make personal payments to himself and family members “in excess of $5 million.”
Alabama Secretary of State Wes Allen recently released a statement urging any Alabama politicians who may have received funds through the alleged Ponzi scheme to return those funds and cooperate with the SEC and ASC.
The ASC recommends that any individuals with information about the scheme contact the commission at 1-800-222-1253.
