Secretary of State Brad Raffensperger announced on Apr. 1 an agreement with Bankers Life Advisory Services and Bankers Life Securities to compensate more than 40 victims who invested nearly $6.7 million in the alleged First Liberty Building and Loan Ponzi scheme. The announcement follows revelations that former financial advisor Timothy Nathaniel Darnell recommended these investments while acting independently, without the knowledge or authorization of Bankers Life.
The issue is significant as it involves a large-scale financial fraud affecting dozens of Georgians, with approximately one-third of the known victims now set to have their investments restored through this agreement. In total, 46 investors will see their losses reimbursed.
“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 Raffensperger.
Cheryl Heilman, President of Bankers Life Advisory Services and Bankers Life Securities, said, “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.”
Negotiations leading up to the agreement involved Special Investigative Agent Jason Doss, the Secretary of State’s Office Securities Division, and Alston & Bird law firm. Noula Zaharis, Assistant Commissioner of Securities for Georgia Secretary of State’s Office, said: “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.”
The Secretary of State’s Securities Division began investigating First Liberty Building and Loan in July regarding its role in an alleged $140 million Ponzi scheme. So far three emergency orders have been issued—including maximum civil penalties—against Brant Frost V, Randy Hough, and Nathaniel Darnell for their involvement.
Raffensperger encouraged other businesses connected with similar cases to negotiate restitution agreements: “Do the right thing. Let’s work together to get these hardworking Georgians their money back,” he said.
