News Summary
Two North Alabama politicians, State Auditor Andrew Sorrell and State Representative Ben Harrison, have returned campaign contributions linked to First Liberty Building and Loan. This follows an investigation by the Alabama Secretary of State’s Office and the SEC into allegations of a Ponzi scheme. The company is accused of fraudulently raising over $140 million from investors while failing to deliver on promised returns. The situation raises significant concerns regarding the integrity of political financing and investment scams in the U.S.
Huntsville, Alabama – In a developing situation involving a Georgia-based Ponzi scheme, two North Alabama politicians have returned campaign contributions linked to First Liberty Building and Loan, which is currently under investigation. The Alabama Secretary of State’s Office has urged any political recipients of funds from this company to return those contributions in light of the investigation.
The Alabama Securities Commission has launched its own inquiry into the circumstances surrounding First Liberty, which has been accused by the U.S. Securities and Exchange Commission (SEC) of fraudulently raising over $140 million from approximately 300 investors since 2014. Allegedly, the company promised investors an enticing 18% return by offering so-called “bridge loans.” However, the SEC’s complaint indicates that First Liberty did not utilize the funds as promised and that the Small Business Administration (SBA) was never involved in the loan processes as claimed by the company. Most investors have reportedly not recouped their investments.
The Alabama State Auditor Andrew Sorrell, who is currently campaigning for Secretary of State, and State Representative Ben Harrison, a Republican from Rogersville, have confirmed that they returned contributions from First Liberty. In total, Harrison returned $21,300 to a court-appointed receiver responsible for aiding the recovery of lost funds for the defrauded investors. Sorrell’s dealings involved over $71,000, notably benefitting from both First Liberty and its associated entities.
Allen Long, a member of the Alabama State Board of Education, received contributions from the company but did not respond to inquiries regarding the situation. The court-appointed receiver is positioned to help investors seeking to reclaim their lost money resulting from the alleged Ponzi scheme.
According to reports, First Liberty made in excess of 1,000 political contributions, amounting to more than $1 million, to various political figures predominantly in conservative circles across the Southeast. Specific mention was made of Harrison receiving substantial donations from Brant Frost, the owner of First Liberty, in March and May of 2022.
Andrew Sorrell’s case is notably more complex, involving a larger sum and suggesting deeper financial entanglements. In addition to his contributions from First Liberty, Sorrell has received funds from other connected entities and was reported to have lost money as an investor in the scheme himself. He has drawn attention to the targeting of conservative audiences by First Liberty in its promotional efforts, framing itself as a “patriotic and Christian investment opportunity.”
Amid these revelations, Sorrell sought clarity from the Alabama Ethics Commission regarding the legality of political action committees (PACs) providing loans. The Commission clarified that there are no legal impediments preventing PACs from lending money. Records also reveal that Sorrell’s PAC, named Alabama Christian Citizens, loaned First Liberty $29,000 in April 2024.
The ongoing investigation has raised significant concerns about the nature of investments and political contributions tied to the operations of First Liberty Building and Loan. As the Alabama Securities Commission continues its examination, the implications for other political figures who accepted donations from the company remain to be seen.
This situation underscores broader issues regarding the regulation of investment scams in the U.S. and the potential vulnerabilities that such schemes pose to both individual investors and the integrity of political financing. The outcome of the SEC’s complaint, along with local investigations, could impact many involved, particularly as affected investors await the resolution of their claims.
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Additional Resources
- WHNT News
- The New York Times
- Alabama Daily News
- AL.com
- 1819 News
- Wikipedia: Ponzi Scheme
- Google Search: First Liberty Building and Loan Ponzi scheme
- Google Scholar: political contributions Ponzi schemes
- Encyclopedia Britannica: Political action committee
- Google News: Alabama politics
Author: STAFF HERE HUNTSVILLE WRITER
The HUNTSVILLE STAFF WRITER represents the experienced team at HEREHuntsville.com, your go-to source for actionable local news and information in Huntsville, Madison County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as Panoply Arts Festival, Rocket City Brewfest, and Huntsville Comic & Pop Culture Expo. Our coverage extends to key organizations like the Huntsville/Madison County Chamber of Commerce and HudsonAlpha Institute for Biotechnology, plus leading businesses in aerospace, defense, and manufacturing that power the local economy such as Boeing, SAIC, and Mazda Toyota Manufacturing. As part of the broader HERE network, including HEREBirmingham.com, we provide comprehensive, credible insights into Alabama's dynamic landscape.
