The biggest news out of the Ferrum Capital trial Thursday was the jury may get the case Wednesday or Thursday of next week as the prosecution plans to wrap up around noon Friday.
But before that, at 8:15 a.m., Judge Fred Biery expects defendants Joshua Allen and Michael Cox to tell him if they want to invoke their Fifth Amendment rights to not testify – or if they plan to take the stand in their defense.
The case was originally planned for three weeks.
Also on Thursday, another list of people who invested in Lubbock-based Ferrum Capital and lost money took the stand.
As also happened Wednesday, Joseph Blackwell, assistant United States attorney, asked them if they were told:
- Their money would be used to pay previous investors.
- About fees and commissions.
- About a 2020 class-action lawsuit against the Collins Asset Group (CAG), which bought distressed debt with money from Ferrum investors.
All of them said they did not know – and if they did, they wouldn’t have invested.
Defense attorneys cross examined witnesses about if they read parts of documents outlining risk, pointed out CAG made no admission of guilt in the 2020 lawsuit, among other questions.
Prosecutors showed documents from a company called Provident, then a page showing money going to a Ferrum entity and finally a signature page approving the transfer.
Susan Hunter and John Halbrooks, both of Lubbock and Gary Crim of Castroville, all told prosecutors that was not their signatures on the last page, saying they did not agree to transfer their money the way prosecutors had just described.
Crim, who came into court with a walker, said Allen had doubled his money with an initial investment.
Anthony Box, Allen’s lead counsel, questioned Crim about him being asked about documents he said he didn’t remember and asked if his memory was foggy.
“I don’t remember my account numbers but not sure you would either,” Crim said.
He talked about trying to get his money and not being able to get hold of anyone in Ferrum’s Lubbock offices.
Richard Munzy, of Bulvedere, who also invested with his wife Barbara, had a series of texts with Cox to find out about his money that were shown in court.
“Hello Mike, I was wanting to get a status … on my account,” Munzy texted.
“Hi Richard, apologize for the delay. Busy tax day yesterday,” Cox texted.
“Interested in status of account. Is it still closing?” Munzy asked about Ferrum IV.
Later, he texted he was getting concerned, asking Cox if there was a problem, saying he was concerned Cox wasn’t responding.
“I don’t have any details. I was burned by CAG so … get worried rather quickly,” Munzy added.
Cox responded, apologizing for the delay, saying he’d talk with Allen on Monday morning and give him an update.
“Is today a good day?” Munzy texted another day.
“Has Joshua not reached out?” Cox texted, giving Munzy Allen’s cell phone number. “You are more than welcome to reach out to him. He works directly with Ferrum IV.”
Munzy said he didn’t believe he ever talked to Allen, but they swapped some texts:
- Allen texted he was in a continuing education conference one week.
- Another time he said he was covered all morning but they were trying to call all the different Ferrum IV notes.
- Another time he was in a conference.
- He said they were waiting for the obligor to send a financial statement.
- Then he texted, “sorry, I had a nephew get married at a destination wedding and still waiting.”
Munzy texted Cox again asking if these things take this long. Cox said he asked Allen for an update. That was on Sept. 18. On Nov. 27 Allen responded to Munzy that he just got voice mail set up and their attorney was putting together a demand on the European bond money.
Thanks! We reached our fundraising goal for travel costs to cover Ferrum Capital trial in San Antonio
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We started covering the pre-trial hearing Friday, August 7 and will be here through the vedict.
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Editor
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Martha Gomez of San Antonio went to see Brooklynn Chandler Willy – Ferrum’s San Antonio affiliate who pleaded guilty to ten charges earlier this year – to ask for full payment with her daughter-in-law who is an attorney.
Gomez said Willy pointed out Gomez wasn’t getting all her interest and the attorney said they want full payment.
Willy said she’d need to talk to Cox and he wasn’t available. The attorney said they’d wait, Gomez said.
Shortly after that, Cox was on the phone and said Allen invested it in European accounts, Gomez said, adding they wanted to talk to Allen and were told he was on a retreat with his son.
They never heard from him again, Gomez said.
Thursday witnesses
Carlos Canales
Residence: Poth
Career: Retired postal worker
Invested: $350,000
Why: Through Brooklynn Chandler Willy
Return: None
Gary Crim
Residence: Castroville
Career: Drilling fluids engineer
Invested: $38,000
Why: Used Allen as an accountant
Return: None
Connie Doyle
Residence: San Antonio
Career: Retired Air Force
Invested: $300,000
Why: Through Brooklynn Chandler Willy
Return: None
Martha Gomez
Residence: San Antonio
Career: Education
Invested: $600,000
Why: Through Brooklynn Chandler Willy
Return: None
John Halbrooks Jr.
Residence: Lubbock
Career: Sales
Invested: $220,000
Why: Started a business and Allen helped with his accounting services
Return: None
Susan & Terry Hunter
Residence: Lubbock
Career: Sales
Invested: $2,417,513
Why: Started a business and Allen helped with his accounting services
Return: None
Joel Kempf
Residence: Castroville
Career: Wholesale plumbing supply company
Invested: $378,000
Why: Through Brooklynn Chandler Willy
Return: None
Richard & Barbara Munzy
Residence: Bulvedere
Invested: $550,000
Why: Through Brooklynn Chandler Willy
Return: $144,000
John Raver
Residence: San Antonio
Career: Sales
Invested: $499,835
Why: Through Brooklynn Chandler Willy
Return: None
David Ridley
Residence: Lubbock
Career: Accounting
Invested: $156,310
Why: Mike Cox was a friend of Ridley’s brother, who passed away.
Return: $57,260
