Ferrum Capital Lawsuit 2021 -

The Ferrum Capital saga is far from concluded. Allen and Cox face a scheduled federal trial date of April 2026 in San Antonio. Willy has accepted a plea deal and will be sentenced after their trial. The FBI continues to seek victims through a public questionnaire, urging anyone who believes they were defrauded to come forward.

The allegations in the class action were devastating. The lawsuit alleged that Ferrum was "designed and created to be a Ponzi scheme" from its inception. The complaint further alleged that the promissory notes issued by Ferrum were unregistered securities, and that the defendants were not licensed to trade in securities under either federal or state law. A Ferrum investment packet, included in the lawsuit, showed that Ferrum was aware of this potential legal liability: the packet stated that if its loan agreements were found to be securities, it "would need to apply for registration with the Securities and Exchange Commission or seek an exemption".

Adkins invested nearly $500,000 — about 20 years of his savings. He was promised $615,000 by October 2024. He never received a dime. ferrum capital lawsuit 2021

The legal troubles surrounding Ferrum Capital, which began with lawsuits in late 2023, trace back to significant investment activities in . During that year, victims—including a plaintiff from Wisconsin—were allegedly misled into investing millions of dollars into promissory notes issued by Ferrum entities. These investments are now at the center of a federal investigation into a multi-million-dollar Ponzi scheme orchestrated by Lubbock businessmen Joshua Allen and Michael Cox , and their San Antonio affiliate Brooklynn Chandler Willy . Key Allegations and 2021 Events

In reality, the underlying investments were highly speculative and lacked the stated collateral. Furthermore, the orchestrators completely concealed that they were extracting —reaching as high as 8% per transaction—to enrich themselves and finance personal expenses. The Systemic Collapse: Default and Bankruptcy The Ferrum Capital saga is far from concluded

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

At the center of the controversy are Lubbock, Texas financial advisors and Michael (Mike) Cox , alongside their San Antonio-based affiliate, Brooklynn Chandler Willy . State and federal authorities, alongside multiple civil courts, have firmly characterized the Ferrum Capital network as a textbook Ponzi scheme that defrauded over 400 victims out of more than $100 million. The Origin and the 2021 Crux The FBI continues to seek victims through a

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