Georgia Secretary of State Brad Raffensperger is turning up the pressure on borrowers tied to the alleged $140 million First Liberty Building & Loan fraud, formally targeting Global Onboard Partners LLC and guarantor Kirk Adams in a new state investigation. Securities staff say they have already identified roughly 40 people who put money into Global Onboard and are now reaching out as part of a broader push to track where investor cash went. The stepped-up borrower probe comes on the heels of Raffensperger’s move last month to bring in a special investigative agent to deepen the state’s work on the First Liberty case.
State Names Investigative Lead And Grants Subpoena Power
On Jan. 30, Raffensperger announced that securities attorney Jason Doss would serve as an investigative agent with power to subpoena witnesses and documents in the First Liberty inquiry, according to the Georgia Secretary of State. The office says Doss can take testimony, hold hearings and will deliver findings and recommendations to Raffensperger during his one-year appointment, effectively acting as the state’s point person on the sprawling case.
Borrowers Under Scrutiny
The Secretary of State’s team says it launched a formal investigation into Global Onboard Partners LLC and Kirk Adams after court filings from the federal receiver showed Global Onboard took a roughly $350,000 loan from First Liberty on Dec. 21, 2020. State staff told reporters that Adams and Global Onboard were soliciting outside investments that were not registered as securities and that investors say the promised returns never arrived. Those details, including the approximate number of investors identified so far, were disclosed publicly in reporting by WSB‑TV.
How It Fits Into The Larger First Liberty Meltdown
Federal regulators have described First Liberty as an alleged $140 million Ponzi scheme and have sued the company and its founder while seeking emergency relief and a receivership, according to the SEC. The court-appointed receiver, S. Gregory Hays, has been combing through thousands of transactions and beginning to claw back assets. The Atlanta Journal-Constitution reports the receiver has only a few million dollars in hand so far and has moved to auction vehicles and First Liberty’s Newnan office to raise at least some money for investors.
What Investors Are Being Told To Do
People who think they invested with Global Onboard or First Liberty are being urged to file a complaint with the Georgia Securities Division and to hang on to any account statements, promissory notes or correspondence they have. The division offers an online complaint portal and investor resources, according to the Georgia Secretary of State’s office, and the state has circulated an investor survey to help match individuals to specific loans. That survey is available online.
Legal Stakes For Global Onboard And Adams
The Secretary of State’s office says Adams and Global Onboard were not licensed to sell securities under the Georgia Uniform Securities Act of 2008, a key factor behind the decision to open the borrower-focused probe, WSB‑TV reports. If investigators ultimately conclude that unregistered offerings or other violations occurred, the case could lead to civil enforcement actions, efforts to secure restitution and referrals to federal authorities, depending on what the receiver’s records show and what federal regulators decide to pursue, according to the SEC.
