A federal jury convicted Joshua Allen and Michael Cox, both of Lubbock, for all four counts against them – Conspiracy to Commit Wire Fraud, Conspiracy to Commit Money Laundering, Conspiracy to Launder Monetary Instruments, and Securities Fraud on Tuesday.
The two Lubbock businessmen went on trial August 10 for a 2025 indictment. After more than a week of testimony, the federal jury in San Antonio started deliberating a bit after noon and another two-plus hours in the afternoon before finding the two co-founders of Lubbock-based Ferrum Capital LLC guilty.
After the verdict was read out loud in court, Allen said he was sorry.
Cox said, “I believe my God is still on the throne and is still good.”
Both men were taken into custody and will remain locked up until their sentencing date. The statutory maximum sentence for Allen and Cox on the original indictment is 70 years in prison. Their sentencing date was set for December 10.
Abbreviated case background
Allen and Cox co-founded Lubbock-based Ferrum Capital in 2017 which defaulted on its payment to investors in 2023. Numerous lawsuits and federal prosecutors referred to Ferrum as a Ponzi scheme.
The criminal case claimed Ferrum took roughly $67.8 million from hundreds of investors – mostly in the Lubbock and San Antonio areas. Many lost their life savings or their retirement savings.
Some got their money back with interest, according to court records. Most did not.
Ferrum loaned money to Austin-based Collins Asset Group. Collins would purchase distressed debt portfolios at a discount. If Collins could collect, everyone would make money – or so investors were told.
A forensic accountant in one of the lawsuits concluded Ferrum’s business plan was “defective.” One of the lawsuits said Ferrum would never be able to keep its promises to investors.
The case started with an FBI investigation in San Antonio as federal agents began looking into Allen and Cox’s former business affiliate, Brooklynn Chandler Willy, of San Antonio.
Willy pleaded guilty earlier this year on 10 charges including wire fraud, aggravated identity theft, and conspiracy. Her sentencing is set for mid-December – after the Allen and Cox.
This story was published as breaking news. Please check back for updates as more information comes in.
Read our series on Ferrum
LubbockLights.com covered Ferrum for more than a year-and-a-half.
Click here to see our series of stories.
