Ferrum Capital Lawsuit 2021 Access

Ferrum Capital lawsuits involve allegations that owners Joshua Allen Michael Cox , along with affiliate Brooklynn Chandler Willy , operated a massive Ponzi scheme through various Lubbock-based Ferrum entities

. While formal federal indictments for fraud and money laundering were announced in , the legal troubles trace back to

and earlier, when regulatory bodies first began flagging the firm's activities. Key Litigation & Regulatory Actions Texas State Securities Board (TSSB) Sanctions (2020–2021)

: In October 2020, the TSSB determined that Ferrum's promissory notes were unregistered "alternative securities" . By 2021, affiliate Brooklynn Chandler Willy

was reportedly sanctioned and fined for selling these unregistered investments Civil Class Action Lawsuits : Numerous civil suits, including those filed in Bexar County District Court

and San Antonio federal court, accuse the defendants of defrauding over 400 investors of between $67 million and $100 million Federal Indictments (2025) Joshua Allen Michael Cox Brooklynn Chandler Willy ferrum capital lawsuit 2021

were indicted for conspiracy to commit wire fraud, money laundering, and securities fraud The Alleged Scheme

The legal troubles involving Ferrum Capital that intensified around 2021 are now characterized by federal authorities as a massive Ponzi scheme. This review outlines the key details of the litigation and the scheme's mechanics. The Core Allegations

Beginning around 2018, Ferrum Capital and its related entities (Ferrum II, III, and IV) solicited investments by promising guaranteed annual returns of 10% over four-year periods.

Investment Nature: The firm claimed funds would be used to purchase distressed debt portfolios through the Collins Asset Group (CAG).

The "Ponzi" Mechanism: Investigations revealed that much of the new investor money was used to pay "returns" to earlier investors to maintain the illusion of profitability. Following the filings in 2021, the situation for

Missing Disclosures: Promoters failed to disclose that they were taking high commissions—often 8%—and that the investment notes were not registered with state or federal regulators. Key Figures & Criminal Charges

In July 2025, a federal grand jury indicted the primary individuals involved on charges including conspiracy to commit wire fraud, money laundering, and securities fraud.

Joshua Allen & Michael Cox: The Lubbock-based owners of Ferrum Capital. They face up to 70 years in prison if convicted. Brooklynn Chandler Willy

: A San Antonio-based financial advisor and affiliate. She was reindicted on 14 counts and recently pleaded guilty to federal charges, including using investor funds for personal expenses and paying other investors. Impact and Current Status

Following the filings in 2021, the situation for Ferrum Capital deteriorated rapidly. The legal battles exposed the risks of "unregulated" private lending. Unlike banks, which are subject to strict federal oversight and capital reserve requirements, private lenders often operate with far less transparency. Following the filings in 2021

The courts were tasked with untangling the financial mess to determine who actually owned the rights to the loans Ferrum had originated. For the plaintiffs (the investors), the goal became recovering whatever assets remained, often through the foreclosure of properties Ferrum held interests in.

In early 2021, Ferrum Capital filed its complaint. The core allegations were severe and fell into three main categories:

The lawsuit did not go to a full trial. In December 2021, Ferrum Capital and the defendant reached a confidential settlement. The terms were not disclosed publicly, but typical resolutions in such cases include:

Court records were formally dismissed with prejudice (meaning the case cannot be refiled) in early 2022.