A federal judge pushed back the criminal trial of Joshua Allen, Michael Cox and Brooklynn Chandler Willy from September 15 until next year.
Allen and Cox were owners of Lubbock-based Ferrum Capital which is accused of defrauding hundreds of Texans – most of them in the Lubbock or San Antonio areas – through a Ponzi scheme.
A grand jury indicted them in July along with Willy, who was their San Antonio business affiliate. Willy was also indicted last year in a related case. They are accused of securities fraud and conspiracy.
The numbers vary in court records, but an indictment against them said victims stand to lose $67 million.
Ongoing coverage of Ferrum Capital
Requesting the delay
In early August, the attorney for Willy, Roy Barrera, filed a sealed motion. Almost immediately the judge granted it – revealing the essence of what Willy requested.
U.S. District Court Judge Fred Biery in San Antonio put off her trial until April 6. The deadline for a plea deal was set at March 27.
Last week Biery revisited the issue – noting that three defendants were indicted together and the case was not severed. Instead of having Allen and Cox face a different trial date than Willy, he moved their trial date and plea deadline to the same as Willy.
The judge believed it was “a reasonable period of necessary delay.”
“The Court further finds that the interest of justice served by taking this action outweighs the best interest of the public and the defendant in a speedy trial, and further finds that such period shall be excluded from the time within which the defendant must be brought to trial under the Speedy Trial Act,” his ruling said.
An exact number of victims was not listed in the criminal case. But Cox filed for bankruptcy last year – revealing the names of nearly 400 persons or businesses to whom he owed money because of Ferrum Capital.
A brief reminder of the indictment
Allen and Cox started Ferrum Capital in Lubbock in 2017 and began to solicit investors, according to their indictment. Willy was a radio host and financial advisor in San Antonio.
Allen, Cox and Willy used Ferrum Capital “ … to steal millions of dollars from hundreds of victims. … Most of the investors lost some or all of their investment.” the indictment said.
Their indictment did not use the phrase “Ponzi scheme,” but numerous lawsuits filed across Texas did.
A press release from prosecutors in July said the three face up to 70 years in prison if convicted.
Willy under two indictments
Willy was indicted in late 2023 and reindicted early last year. This was months before she was indicted yet again with Allen and Cox. So she’s under two indictments at the same time while Allen and Cox face one.
As for Willy’s 2024 indictment, she’s looking at a January 26 trial date.
The biggest difference between the two is an accusation Willy obstructed a federal investigation.
