Georgia’s Raffensperger Wins $6.7 Million Refunds in Alleged $156 Million Ponzi Scheme
Georgia Secretary of State Brad Raffensperger announced Wednesday that his office persuaded Bankers Life, a unit of Indiana-based CNO Financial Group, to repay $6.7 million to 46 investors who lost money in an alleged $156 million Ponzi scheme run through First Liberty Building & Loan. The deal targets investments sold by former Bankers Life adviser Timothy Nathaniel Darnell and comes as the SEC pursues a separate lawsuit alleging First Liberty leader and GOP activist Brant Frost IV stole $17 million for himself, relatives and affiliated companies. Raffensperger’s securities division has already levied $500,000 in civil fines against three people tied to the scheme and has referred them to prosecutors for possible criminal charges, while also winning new legislative authority to enhance compensation for securities-fraud victims. The case has drawn intense political interest because prominent Republicans — including a company run by former Georgia GOP chair David Shafer, Alabama Auditor Andrew Sorrell and a Sorrell-linked PAC — were among those who lost money, and because many grassroots activists were reportedly recruited via pitches on popular conservative talk shows. Raffensperger, reviled by many Trump loyalists for refusing to overturn Joe Biden’s 2020 win in Georgia, is using the highly visible crackdown to present himself to GOP primary voters as a tough financial watchdog as he runs for governor in a crowded May 19 primary to succeed term-limited Gov. Brian Kemp.
📌 Key Facts
- Raffensperger announced on April 1, 2026, that Bankers Life will refund $6.7 million to 46 investors who bought First Liberty investments through adviser Timothy Nathaniel Darnell.
- The SEC alleges First Liberty was a $156 million Ponzi scheme and says company leader Brant Frost IV stole $17 million for himself, relatives and affiliated companies.
- Georgia’s secretary of state has imposed $500,000 in civil fines on three people tied to the scheme and referred them to prosecutors for potential criminal charges, while winning new legislative powers to aid fraud victims.
- Victims include entities linked to former Georgia GOP chair David Shafer, Alabama state Auditor Andrew Sorrell and a Sorrell-controlled PAC, and many grassroots Republicans were reportedly drawn in via conservative talk-show ads.
- Raffensperger is highlighting the case as part of his campaign for the Republican gubernatorial nomination in Georgia’s May 19 primary.
📊 Relevant Data
Investment fraud was the cybercrime causing the most severe financial damage in the United States in 2024, with victims reporting losses totaling over $6.5 billion, particularly involving cryptocurrency.
In 2024, Black respondents were the most likely to have been fraud victims at 50%, compared to 41% for both White and Hispanic respondents, based on a survey of US adults.
4 in 10 Americans Have Lost Money to Fraud, AARP Survey Finds — AARP
Older consumers (aged 60 and over) experienced far higher median losses from investment scams in 2024-2025, with losses often exceeding $10,000 per victim, compared to lower median losses for younger age groups.
Protecting Older Consumers 2024-2025 (A Report of the Federal Trade Commission) — FTC
Affinity fraud, where scammers target members of identifiable groups such as ethnic, religious, or political communities by exploiting trust, has been involved in major Ponzi schemes, including a $300 million crypto scheme targeting the Latino community in 2024.
Affinity Fraud Cases — SEC
As of 2024, White voters make up the majority of Republican identifiers or leaners (about 80% of Republicans are White), while Black voters are only 12% Republican-leaning, Hispanic 35%, and Asian 34%.
Party affiliation of US voters by race, ethnicity, education — Pew Research Center
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