State officials say an agreement is in place to make at least forty victims whole following the alleged First Liberty Building and Loan Ponzi scheme.
The Georgia Secretary of State’s office announced recently that Bankers Life Advisory Services and Bankers Life Securities has entered into an agreement to assist some of the victims who invested nearly $6.7 million in what the office says is a “Ponzi scheme at the recommendation of former financial advisor Timothy Nathaniel Darnell.”
According to a press release from the office:
The agreement comes after it was revealed Timothy Nathaniel Darnell allegedly used his position to draw in more than 40 investors, acting independently without Bankers Life’s knowledge or authorization.
In total, 46 investors will see their investments made whole, around one-third of the victims who came forward to the Secretary of State’s Office.
The agreement was made possible through negotiations with Special Investigative Agent Jason Doss, the Secretary of State’s Office Securities Division, and Alston & Bird.
“While Timothy Nathaniel Darnell acted independently without Bankers Life’s knowledge or authorization, our clients come first – and that’s why we agreed to make a monetary contribution to this fund,” said Cheryl Heilman, President of Bankers Life Advisory Services and Bankers Life Securities.
“I want to sincerely thank Bankers Life for acting with integrity. They as a company chose to do the right thing and help the Georgians who lost everything in this alleged Ponzi scheme orchestrated by First Liberty,” said Secretary of State Brad Raffensperger.
Secretary Raffensperger hopes this is just the first of similar agreements and is encouraging other businesses to follow suit and enter negotiations to repay victims of the $140 million Ponzi scheme.
“I appreciate the partnership and commitment of Bankers Life Advisory Services and Bankers Life Securities to provide recoveries for their Georgia customers who were victims of the First Liberty Ponzi scheme,” said Noula Zaharis, Assistant Commissioner of Securities for Georgia Secretary of State’s Office.
The Secretary of State’s Securities Division opened an investigation into First Liberty Building and Loan for their involvement in orchestrating a $140 million Ponzi scheme in July. So far, three emergency orders, which included maximum civil penalties of $500,000, were issued to Brant Frost V, Randy Hough, and Nathaniel Darnell for their involvement in the alleged Ponzi scheme.
If you are an investor who lost money investing in First Liberty but haven’t contacted the Secretary of State’s Office to file a complaint, please do so as soon as possible. You can contact the Securities Division at registrations@sos.ga.gov.
