NEWNAN, GA — Edwin Brant Frost IV, the founder of First Liberty Building and Loan, pleaded guilty to wire fraud in federal court in Newnan.

The guilty plea marks the first criminal conviction connected to the collapse of the Newnan-based firm.

Federal regulators accused First Liberty last year of operating a $140 million Ponzi scheme that targeted conservative and faith-based investors in Georgia and other states.

Frost pleaded guilty to a single count of wire fraud tied to the misuse of investor money.

He faces a maximum sentence of 20 years in prison, though prosecutors recommended a 14-year sentence.

Frost is scheduled to be sentenced during an Aug. 14 hearing.