By Mason Edwards
Chattanooga Times Free Press, Tenn.
(TNS)
Former Chattanooga accountant Jonathan Frost is free on a $10,000 bond after he pleaded guilty to three federal financial crimes in court Wednesday.
He officially entered the plea in court before Magistrate Judge Christopher H. Steger in the afternoon. Frost, his attorney and a federal prosecutor had signed a plea agreement in January, and it was filed in court late that month.
While the magistrate judge accepted Frost’s plea of guilty to conspiracy to commit wire and tax fraud and conspiracy to commit money laundering, a federal district judge still needs to accept the plea, Frost’s attorney, Lee Davis, said by text.
Chief U.S. District Judge Travis R. McDonough is not required to accept the agreement, and he can impose a sentence more or less severe than anticipated, according to Steger. Federal prosecutor Frank Dale said that the plea agreement was approved by the Department of Justice.
In the meantime, Frost, 42, surrendered his passport, must provide a DNA sample and report to a probation officer, among other conditions, while he awaits his sentencing, which is scheduled for Aug. 7. Throughout the hearing, Steger reviewed Frost’s rights, ensured Frost entered the plea deal voluntarily and discussed rules for sentencing and bond.
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After the formal proceedings, Steger offered advice to Frost, something the judge said he does for everyone who pleads guilty before him. While acknowledging he desired to be sensitive to the victims, the judge said Frost’s guilty plea was an act of integrity. It’s difficult to accept responsibility for one’s actions and the consequences that come afterward, he said.
Frost took a positive first step, Steger said, but the accountant’s long-term goal should be to take what was wrong and make it right—which is what the judge defined as justice.
Around 11 of Frost’s family and friends filtered into Courtroom 1B. Frost’s parents, Steven and Lisa Frost, attended and declined to comment. Before the hearing, an attorney asked those in the gallery whether any were victims. No one answered.
The former accountant initially sat by his parents before moving to sit between his attorneys, Lee Davis and Logan Davis. When a comment was requested after the hearing, the lawyer said he and his client would rely on what was said during court.
There were no dropped charges under the plea bargain, Dale, the federal prosecutor, said in court. After the proceedings, Dale said he could not speak to the press without permission. The spokesperson for his office did not immediately respond to a voicemail requesting comment.
Frost was satisfied with his representation and knowingly waived his rights to a trial by jury and the presumption of innocence, he said. There were no mandatory minimum prison times for Frost’s charges, Steger said.
Frost’s plea agreement set maximums of up to 20 years in prison on each of the wire fraud and money laundering conspiracies and up to five years for the tax fraud conspiracy. Each charge listed maximums of three years supervised release, forfeitures, restitution and fees ranging from $100,000 to $500,000.
Frost will no longer be able to vote, serve on a jury, own firearms or run for public office, the judge said. He also has to refrain from any use of alcohol and illegal drugs and report any law enforcement encounters to his probation officer. Steger warned Frost not to allow friends over to his residence with firearms, as that could also cause problems for him.
He is required to provide his probation officer, Kaniqua Kelly, with access to any requested financial information and cannot enter into any agreement to act as an informer or special agent for a law enforcement agency without the court’s permission, according to court records.
“The defendant shall not incur new credit charges on existing accounts or apply for additional lines of credit without permission of the probation officer,” his release conditions document said. “In addition, the defendant shall not enter into any contractual agreements which obligate funds without the permission of the probation officer.”
Frost also admitted guilt to the facts laid out in the plea agreement, which detailed how he and a coconspirator solicited funds to build a plant that would use solar power to extract hydrogen gas from water.
Frost and his coconspirators used wire communications to intentionally defraud investors regarding the proposed hydrogen plant, the plea agreement filing said. Investor funds were used to pay Frost’s employees at his accounting firm, paid cash loans with exorbitant interest fees and other expenses unrelated to the construction of the facility.
The agreement also accused Frost and coconspirators of defrauding the government in fraudulent tax returns at a cost to the United States of over $8 million. The plea agreement said that unless otherwise negotiated, Frost could owe the government no less than $70 million.
“The defendant further agrees to assist the United States fully in the identification, recovery and return to the United States of any other assets or portions thereof subject to forfeiture,” the agreement said.
It’s unlikely victims will see restitution, according to one attorney representing Frost’s former investors, Alex Loftus. Other civil judgments granted against Frost haven’t been successful in recouping losses, as the money was spent keeping the alleged scheme going. Those judgments, Loftus said, are pieces of paper that say a person owes money.
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If the plea agreement goes through, the associated criminal judgment against Frost will be more permanent than the civil judgments, Loftus said. Criminal judgments cannot be discharged through bankruptcy. A sealed version of the plea agreement has also been filed, court records showed.
Photo caption: Jonathan Frost (via his YouTube page)
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© 2026 the Chattanooga Times/Free Press (Chattanooga, Tenn.). Visit www.timesfreepress.com. Distributed by Tribune Content Agency LLC.
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