Victims of the First Liberty Ponzi scheme can now begin the formal process of claiming money from the court-appointed receiver, following an October 27 federal court order establishing how investors’ losses will be calculated and how recovered funds may eventually be distributed. U.S. District Judge Michael L. Brown approved the claims process for First Liberty Building and Loan and related companies, giving investors and other eligible creditors 60 days from the date of the order to submit their claims. The calculated filing deadline is December 26, 2026. The order provides the first detailed procedure for the more than 300 victims identified by federal prosecutors to establish how much money they lost and seek repayment from funds recovered during the receivership. It does not establish how much each investor will receive or when payments will begin. The development comes one day after Edwin Brant Frost IV was sentenced to 15 years in federal prison and ordered to pay $76,454,374.39 in restitution. The criminal restitution order and the receiver’s claims process are separate legal procedures. The new claims process concerns assets recovered through the federal civil receivership. Court-appointed receiver S. Gregory Hays is required to send information about the claims process to known potential claimants within 10 days of the October 27 order. Those notices will be sent by first-class mail to the last known address of each potential claimant. Known investors will receive a…
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