Ep. 488: John MacArthur, the Johnson Amendment, and a Giant Ponzi Scheme in Georgia

On today’s program, St. Andrew’s Chapel is facing questions over its lack of financial transparency. Members say church leaders refuse to share budget details. Now, the local presbytery is involved. We’ll have details. And, the I-R-S now says churches CAN endorse politicians—this, despite the so-called Johnson Amendment…a law that threatens to remove a ministry’s non-profit status if it makes political endorsements. The move comes as the I-R-S hopes to settle a lawsuit brought by the National Religious Broadcasters. We’ll take a look. Plus, John MacArthur—megachurch pastor and voice of ‘Grace to You’—has died at the age of 86. But first, a well-known Christian businessman has been charged in heading up a $140M ponzi scheme. The producer for today’s program is Jeff McIntosh. We get database and other technical support from Stephen DuBarry, Rod Pitzer, and Casey Sudduth. Writers who contributed to today’s program include Kim Roberts, Kathryn Post, Tony Mator, Bob Smietana, and Jack Jenkins.   MANUSCRIPT:    FIRST SEGMENT Warren: Hello everybody. I’m Warren Smith, coming to you this week from Covenant College on Lookout Mountain, Georgia. Christina: And I’m Christina Darnell, in for Natasha Cowden, coming to you from Mooresville, North Carolina, and we’d like to welcome you to the MinistryWatch podcast. Warren: On today’s program, St. Andrew’s Chapel is facing questions over its lack of financial transparency. Members say church leaders refuse to share budget details. Now, the local presbytery is involved. We’ll have details. And, the I-R-S now says churches CAN endorse politicians—this, despite the so-called Johnson Amendment…a law that threatens to remove a ministry’s non-profit status if it makes political endorsements. The move comes as the I-R-S hopes to settle a lawsuit brought by the National Religious Broadcasters. We’ll take a look. Plus, John MacArthur—megachurch pastor and voice of ‘Grace to You’—has died at the age of 86. Christina: But first, a well-known Christian businessman has been charged in heading up a $140M ponzi scheme. Warren: The Securities and Exchange Commission has filed charges against Edwin Brant Frost IV…the founder and owner of First Liberty Building and Loan in Georgia. The S-E-C claims Frost headed up a Ponzi scheme that cheated about 300 investors out of at least $140 million. Frost—a well-known conservative Christian businessman—once ran the presidential campaign for Pat Robertson in Georgia. He apparently used his church and conservative political connections to fund his scheme. Christina: The complaint alleges that between 2014 and 2025 Frost offered investors promissory notes and loan participation agreements with 18 percent returns. He used new investor funds to make payments to existing investors. Warren: The S-E-C also claims Frost used investor funds for his personal use—including making over $2.4 million in credit card payments, paying more than $335,000 to a rare coin dealer, and spending $230,000 on vacations. Christina: Frost was also actively involved in politics, apparently making $570,000 in political donations. Brad Raffensperger, Georgia Secretary of State, is urging candidates and political committees to return any campaign contributions they received from Frost. Warren: Conservative commentators praised the Frosts. Hugh Hewitt has even compared the elder Frost to the main character of “It’s a Wonderful Life,” calling him “Georgia’s George Bailey,” according to Christianity Today. The S-E-C is also seeking emergency relief, including freezing assets. In a statement released by his lawyer to the New York Times, Frost apologized: “I take full responsibility for my actions and am resolved to spend the rest of my life trying to repay as much as I can to the many people I misled and let down.” Christina: Warren, our next story takes us back to Sanford, Florida,