Federal Wire Fraud Charge Linked to $156M Ponzi Scheme
He waived indictment, a step before a guilty plea.
Prosecutors allege First Liberty was a Ponzi scheme, promising 18% interest using new funds to pay earlier investors.
SEC sued the company last year.
Frost allegedly skimmed $5M for personal use, including $2M in credit cards and $230K for a Maine vacation home.
Investors lost at least $65M.
U.S. Attorney Hertzberg says Frost won't contest charges and will likely plead guilty in May.
Hertzberg states the loss is significant, affecting prominent Republicans and activists.
Wire fraud charge carries a 20-year maximum prison sentence.
A court-appointed receiver holds $5.16M in cash and is recouping assets from 30 unpaid loans.
1 week ago