Two Republican organizations linked to the collapsed First Liberty Building & Loan are facing dozens of alleged campaign finance violations after the State Ethics Commission found probable cause Thursday.
In a unanimous vote, the commission said the Georgia Republican Assembly and its political action committee failed to register properly, did not file required disclosures and withheld more than $180,000 in campaign contributions. The action clears the way for a full hearing that could
bring substantial civil penalties.
The GRA-PAC acknowledged probable cause in a written response, but the Georgia Republican Assembly disputed the charges, arguing it is a separate organization and should not be held responsible for the PAC’s activities. Attorney Catherine Bernard told commissioners the groups operated independently.
Commission investigators disagreed, citing overlapping leadership, shared fundraising efforts and PAC spending that aligned with GRA endorsements. Ethics commission attorney Timothy Baywal said the PAC’s bylaws limited donations to candidates approved by the GRA, calling the structure “a closed shop.”
Thursday’s vote is the latest consequence of First Liberty’s collapse last summer. Federal authorities say the Newnan-based lender operated a $140 million Ponzi scheme and alleged that founder Brant Frost IV used investor money to make more than $570,000 in political contributions. An Atlanta Journal-Constitution review found the Frost family donated more than $1.4 million to campaigns nationwide.
The ethics commission has charged both the GRA and GRA-PAC with 50 violations. The case now moves toward a full bench trial.
“We look forward to moving forward to a full bench trial and questioning more witnesses under
oath to ensure the violators of Georgia campaign laws are held accountable,” Ethics Commission Director David Emadi said.
Earlier this year, the New Georgia Project paid a record $300,000 to settle similar allegations.
This report is based in part on information originally reported by the Atlanta Journal-Constitution.
