Lubbock men Joshua Allen and Michael Cox have been accused of orchestrating a massive Ponzi scheme that cheated hundreds of victims out of millions of dollars.
The indictment alleges that Allen and Cox jointly owned and controlled four investment companies: Ferrum Capital LLC, Ferrum II LLC, Ferrum III LLC, and Ferrum IV LLC. Brooklynn Chandler Willy of San Antonio, who was arrested in December on separate obstruction and fraud charges, was also involved in the scheme.
According to the indictment, Allen, Cox, and Willy misled victims about the security of the investments and concealed their high commissions. They allegedly lied about the nature of the investments, causing hundreds of victims to collectively lose millions of dollars.
Much of the money went to pay earlier investor-victims, concealing the scheme and attracting additional victims. Some of the money also directly benefited the indicted co-conspirators and their associates.
Allen, Cox, and Willy are each charged with one count of conspiracy to commit wire fraud, one count of conspiracy to commit money laundering, one count of conspiracy to launder monetary instruments, and one count of securities fraud.
They face up to 70 years in prison if convicted on all charges. A federal district court judge will determine the sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The FBI and IRS-CI are investigating the case.
Assistant U.S. Attorneys Joe Blackwell and Kelly Stephenson are prosecuting the case. An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The indictment was returned on July 2, 2024. Allen and Cox made their initial court appearance today before U.S. Magistrate Judge Henry Bemporad.
This is a developing story and we will provide updates as more information becomes available.
Related Federal Cases
- Christopher Ferguson, Securities Fraud, New York 2020 · Texas
- Letitia James, Securities Fraud, New York 2022 · Texas
- Jason Jarin, Medicaid Fraud and Illicit Transition Procedures, Texas 2023 · Oklahoma
- Michael Scott Calhoun, Wire/Mail Fraud, OK, 2023 · Oklahoma
- Shannon Tecoko Mays, Conspiracy to Commit Wire Fraud, Texas, 2012 · Oklahoma
Key Facts
- State: Texas
- Category: Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
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