Latest suit against Frost, Croft has zingers
Chattanooga accountant Jonathan Frost and his CPA firm, Croft & Frost, were accused Friday of massive fraud in an Illinois lawsuit, and the attorneys are seeking class action status on behalf of clients and others who allegedly lost tens of millions of dollars to investment schemes.
Alexander Loftus and Ross Good, the attorneys who filed the lawsuit, said in the complaint that Frost and his business partner, Paul Croft, over-promised and underdelivered. They allegedly sold about $50 million in purported clean energy and real estate investments, but only about $1.2 million found its way into actual investments.
The remaining funds allegedly went to propping up Frost and Croft’s other businesses and maintaining their extravagant lifestyles, the lawsuit states.
“The result of their hubris and grandiosity was a failed business that left hundreds of investors in the lurch,” the lawsuit states.
The lawsuit’s language borrows from the social media personas of Croft and Frost and is sometimes just as colorful. Some excerpts:
› “The business model was unique with flat fees including individual tax packages from $600 to $7,500. Frost explained in an interview before the demise of CF: ‘Our clients are the reason we’re here, so we want to make sure they know they’re treated with respect and honesty, which includes the way we seek to educate them as well. Educating clients builds credibility, establishes value and boosts their confidence that they’re working with the best.’ Frost pitched his accounting business with online sermons presenting a mixture of Norman Vincent Peal, Bill W. and Jesus Christ all to induce his following to buy CF’s services.”
› “Frost was an excellent selfpromoter as depicted below,” the lawsuit said, referring to a photo of Frost on an album cover with the title, “Everyday I’m hustlin’.”
› “Frost held himself out as business guru rather than just an accountant. His YouTube page states, ‘To know J.D. is to know his past. As a recovering alcoholic, J.D. believes in the power of Day 1. Treating every day as Day 1 has helped J.D. overcome massive obstacles in his personal life and his business. J.D. contributes his sobriety and his successes to living his life according to this motto. J.D. believes that to change any aspect of life, one must change their daily routine. He helps
others overcome aspects in their life where doubt, fear, and isolation are preventing them from living a life of true freedom. Day 1 consists of implementing daily action, accountability and discipline into one’s life to help remain present and have the courage to keep moving onward during challenging times.’ Frost explained in a seminar posted on his YouTube channel: ‘We [Croft & Frost] help you build courage, we help you create wealth, we help you change the way you think.’” ›
“During 2015, Frost partnered up with Croft who took the sales pitch to a new level. Croft told everyone who would listen just how exceptional he was. Croft quoted himself in his biography, stating ‘I am a visionary who is a left brain creative that believes in courage over cash. You need the courage to go get the cash.’ The 41-yearold Croft also claims he’s worth over $700,000,000! A $700,000,000 net worth doesn’t fit leaving his customers in the lurch because he couldn’t pay his employees.”
› “Croft broadcasted his grandiosity on social media with videos of him preaching while wearing apparently every piece of jewelry he owns and standing in front of his Ferraris.”
› “CF failed to exercise professional care by dropping the ball for everyone days before a filing date without allowing its customers sufficient time to find a replacement accountant.”
› “CF was wholly negligent in planning and supervising the work being done in the months leading up to its demise and failing to implement a plan to notify its thousands of customers that CF was failing and they needed to take their business to a capable firm before abruptly shutting down operations.”
Frost and Croft did not respond to requests for comment.