In the federal indictment against Joshua Allen and Michael Cox, there’s a line saying, “Allen told one victim it would take ‘Jesus coming back’ for there to be a problem with his investment into Ferrum Capital.”
On Friday in San Antonio federal court, people heard Allen say it during the testimony of retired Lubbock dentist Jay Adkins, who secretly recorded a meeting he had with Allen. Adkins, like so many others, put money into Ferrum Capital.
Then when one of Allen’s attorneys cross-examined Adkins, they got into a spirited back-and-forth about faith, which the prosecution has said the defendants used to build trust.
“Some of his statements were not truthful,” Adkins told attorney Eddie Mendoza, adding, “I am a true man of faith.”
Mendoza asked about Allen being a man of faith.
“No – I know he professes it,” Adkins said.
Mendoza asked if Adkins thought he could pass judgment, saying at one point, “You don’t know what was going on in his mind?”
Adkins then questioned Allen’s heart.
Mendoza said Allen brought up Jesus to help connect with Adkins, who then said Allen did it “to make me get the investment.”
Adkins was the final person to testify for the prosecution, which rested its federal fraud case against Allen and Cox late Friday morning. Besides Adkins, the court heard from six other people who lost money.
Allen and Cox are charged with securities fraud and multiple conspiracy counts. Criminal records and civil lawsuits filed against them accuse the two of using Lubbock-based Ferrum Capital as a Ponzi scheme.
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Earlier in the morning, both defendants told Judge Fred Biery they do not intend to testify so Biery dismissed the jury before noon, telling everyone to return Monday morning by 8:30 when Allen and Cox’s attorneys will begin their defense. The judge expects the jury to get the case Wednesday afternoon.
Adkins told the court Allen’s father had been his CPA for more than 40 years. He had money he wanted to put in a safe investment to be used for his daughter who has a disability.
When Adkins read documents outlining more risk than he expected, he set up a meeting with Allen, who didn’t know Adkins would record it.
During the meeting in Allen’s office, Adkins asked about risk outlined in documents. Allen responded the investment had a fixed rate and the form Adkins read was a form used for all investments in Texas.
Collins Asset Group
Ferrum loaned money to Austin-based Collins Asset Group. Collins bought distressed debt portfolios for pennies on the dollar. Investors were told if Collins could collect on those debts, everyone would make money.
Collins settled a class action lawsuit in 2020 for nearly $16 million but denied wrongdoing.
Collins defaulted to Ferrum in 2023 according to civil litigation. Ferrum in turn defaulted to its participants. Collins filed for bankruptcy in 2025.
He asked about Ferrum, and Allen responded it was “our company,” going on to say Collins Asset Group (CAG) had a long history of not missing payments.
“So it’s not speculative,” Allen said during the recording.
Allen went on to say both men are Christians and then said the line about Jesus that was referred to in the indictment.
“This is one of the safest things out there,” Allen said on the recording.
Joseph Blackwell, assistant United States attorney, asked Adkins if he was told that CAG had been sued for fraud – and he said he was not.
During cross examination, Mendoza asked Adkins if he knew CAG made no admission of liability in that lawsuit and Adkins said he did not hear that.
Friday witnesses
Michael McGuire
Residence: Houston area
Career: Insurance
Invested: $171,030
Why: Through Brooklynn Chandler Willy
Return: None
Philip McNabb
Residence: Lubbock
Career: Retired dentist
Invested: $290,000
Why: Knew Allen through Allen’s father
Return: $5,200
Tony Newton
Residence: Slaton
Career: Manages cotton gin
Invested: $220,000
Why: Referred to Cox by a friend
Return: $3,000
Cynthia Tarrant
Residence: Seminole
Career: Operational assistant
Invested: $280,000
Why: Her boss, Tommy York (see below), introduced her to Ferrum
Return: $139,792
Don Woods
Residence: Midland
Career: Retired oil & gas
Invested: $1,225,984
Why: Started working with Allen almost 20 years ago
Return: $472,500
Tommy York
Residence: Brownwood, previously Lovington, N.M.
Career: Superintendent in oil and gas industry
Invested: $320,000
Why: Met Cox when York bought a boat from him.
Return: $156,960
