First Liberty Building & Loan Investor Alert

Soreide Law Group is currently reviewing potential investor claims tied to sales practice violations by securities brokers and financial advisors. One area of concern involves investments offered through First Liberty Building & Loan LLC. This program attracted hundreds of investors nationwide but has since drawn attention from regulators. There is troubling information connected to these offerings that investors should be aware of, which is outlined below.

What is First Liberty Building & Loan?

First Liberty Building & Loan was formed by Edwin Brant Frost IV and offered investments in the form of loan participation agreements and promissory notes. These products were described as short-term financing arrangements, often promoted as bridge loans to small businesses. Marketing materials promised appealing annual returns of 8% to 18%, and in certain cases suggested that government backing would protect investors. From 2014 through 2025, First Liberty raised approximately $140 million from more than 300 individuals. The early fundraising was largely through friends and family but later broadened to the general investing public.

Concerns About First Liberty Building & Loan

Regulators have raised serious issues with how these investments were presented and managed. The SEC alleges that the company and its founder gave misleading assurances about loan performance, including claims that no defaults had occurred. Supposedly, many of the loans were failing, which undermined the pool of assets available to repay investors. By 2021, investigators claim the operation was effectively paying earlier investors with money raised from new participants. In addition, millions of dollars were allegedly diverted for personal expenses, ranging from credit card bills to luxury purchases and vacations. These allegations suggest investors may not have received the safe, income-producing product they were promised.

Sales Practice Violations

Investors may also have been harmed by the conduct of brokers or advisors who recommended these investments. Potential violations include unsuitable recommendations, failure to disclose risks, misrepresentations about safety, or sales through unlicensed individuals. When investors suffer losses because of such misconduct, they may have the right to pursue financial recovery. Legal options include filing a claim in FINRA arbitration or initiating securities litigation to recover damages for the harm they experienced.

Did You Sustain Losses By Investing In First Liberty?

Did you experience losses because of investing in First Liberty Building & Loan due to the actions of your financial advisor or broker? If so, contact Soreide Law Group online or call (888) 760-6552 to discuss your potential claim with a securities attorney. Soreide Law Group has assisted investors across the country in recovering losses. The firm works on a contingency fee basis and advances all costs, meaning clients pay nothing unless a recovery is obtained.