A brief hearing Wednesday in the Mike Cox bankruptcy case in Lubbock revealed the entire case may be reassigned to Judge Mark Mullin in Fort Worth.
Part of the case (an adversarial proceeding in objection to the bankruptcy) was transferred in early February to Mullin due to the retirement of Judge Robert L. Jones – scheduled for early April.
LubbockLights.com was told one of the lawyers involved in the case will soon be Jones’ replacement on the bench. The official announcement has not been made yet, and the attorney was unable to comment until that happens.
The new judge cannot oversee a case after representing someone in it.
Who is Mike Cox, and why does it matter?
Cox claimed in his bankruptcy petition that he owes $59 million to nearly 300 people or businesses. The dollar figure continues to grow.
Most of the debt was related to Ferrum Capital which we covered in the following stories:
- Hundreds may have lost millions with troubled local company after criminal case extends to Lubbock from San Antonio
- More charges filed in San Antonio related to FBI investigation of troubled Lubbock firm; one victim speaks about losing retirement savings
- Deal proposed in Lubbock $82 million Mike Cox bankruptcy case could recover small portion for Ferrum participants
- Threat illustrates frustration of Ferrum Capital investors, who want to know where money went, if they’ll recover any
- ‘They robbed people blind,’ says upset Lubbock attorney representing dozens in Ferrum Capital case
According to numerous lawsuits, Cox, Joshua Allen and Brooklyn Chandler Willy collected money from people on behalf of Ferrum Capital. The participants in Ferrum were mostly from the greater Lubbock and San Antonio areas. Ferrum transferred the money to Collins Asset Group, according to the lawsuits. Collins was to purchase distressed debt for pennies on the dollar, collect it and make money. Ferrum defaulted in late 2023.
A grand jury indicted Willy in December and reindicted her with additional charges in January. The allegations against her include wire fraud and securities fraud. Her criminal trial is still pending.
Two items in the hearing
Two items came up in the hearing and no action was taken. The office of U.S. Trustee filed an objection to Cox’s keeping certain personal property including the full value of his home.
However, after the objection – and after a March 26 hearing date was already set, an attorney for the trustee, Kent Ries, reached a proposed deal with Cox. The proposal goes to court for a hearing on April 30.
The second item was a lawsuit filed against a company called Wealth Watch Advisors. The lawsuit, originally filed in state court in Bexar County, claimed Cox was an independent advisor for Wealth Watch and therefore has some liability for his actions. Cox has repeatedly said he’s done nothing wrong. The case was transferred to federal court in San Antonio, then transferred again to the federal court in Lubbock and then finally transferred to the bankruptcy court.
The plaintiffs, who lost money with Cox, want the case brought back to state court. Jones said his replacement will need to decide what happens next or if it needs to go to Judge Mullin.
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