The refers to a series of legal actions that began surfacing around 2021, eventually exposing a massive $67 million to $100 million Ponzi scheme orchestrated by Lubbock and San Antonio-based financial advisors . The scheme primarily targeted elderly retirees through promissory notes issued by entities known as Ferrum Capital LLC, Ferrum II, Ferrum III, and Ferrum IV. Background: The "Lending Program" Strategy
The lawsuits that began or were rooted in activities from 2021 led to several landmark rulings:
Lubbock, Texas businessmen founded Ferrum Capital in 2017. Operating through a cluster of interconnected entities—including Ferrum Capital LLC, Ferrum II LLC, Ferrum III LLC, and Ferrum IV LLC—the co-founders pitched a highly lucrative, seemingly low-risk alternative investment strategy. The Pitch: Distressed Debt and High Returns
in a Ferrum entity. Instead of investing the funds, she reportedly used the money for personal expenses and to pay off other investors—a classic hallmark of a Ponzi scheme. Federal Charges (2025-2026) : In July 2025, Ferrum Capital owners Joshua Allen Michael Cox were indicted alongside ferrum capital lawsuit 2021
The Anatomy of a Multi-Million Dollar Fraud: Deep Dive into the Ferrum Capital Lawsuits and Fallout
A recorded conversation between Allen and one of his victims, retired Lubbock dentist Jay Adkins, illustrates the strategy. When Adkins pressed Allen about the risks of investing his retirement savings in Ferrum Capital, Allen reassured him: "This is one of the safest things out there." Pressed further on what could go wrong, Allen responded: "It would take Jesus coming back".
Ferrum then came calling for its $5.25 million breakup fee. The refers to a series of legal actions
: During this period, Ferrum Capital was actively transferring investor funds to Collins Asset Group , a debt collection company. Forensic reports indicate CAG received approximately $50 million from Ferrum through February 2022. Key Figures and Legal Allegations
: In May 2021, Willy allegedly advised clients to invest $500,000 into a new Ferrum entity.
According to federal documents and Justice Department investigations, financial advisors acting as affiliates continued to push Ferrum investments during this period. For example, Brooklynn Chandler Willie—a San Antonio-based financial advisor and radio show host who worked with Ferrum—advised a married couple in May 2021 to invest $500,000 into a Ferrum-related company, utilizing Chandler Capital Holdings. Federal Charges (2025-2026) : In July 2025, Ferrum
: Over 400 investors collectively lost more than $100 million through various Ferrum entities (Ferrum Capital, Ferrum II, and Ferrum IV).
If you or someone you know believes you may be a victim of the Ferrum Capital scheme, the FBI has established a victim questionnaire at forms.fbi.gov/victims/FerrumVictims/. All information is voluntary and will be used in the ongoing federal investigation.