A judge ordered Lubbock businessman Joshua Allen to not sell, dispose or prejudice “in any way” his business assets. (See the list below.) The order came Friday morning from 131st State District Judge Norma Gonzales in San Antonio.
Allen, his business partner Mike Cox and their San Antonio business affiliate Brooklynn Chandler Willy, were accused of using Lubbock-based Ferrum Capital to run a Ponzi scheme – causing hundreds of people to lose millions of dollars. All three were charged with securities fraud and other crimes in federal court. Willy pleaded guilty this year. Allen and Cox are scheduled for trial in August.
Related story: Ferrum Capital investors have until September 3 to file a claim — here’s how
They were also sued in multiple court cases, including the one now pending in San Antonio – where a court-appointed receiver, John Patrick Lowe, took control of Ferrum. Lowe’s attorney, Royal Lea, asked the judge two weeks ago to put a temporary injunction in place to stop Allen from selling or otherwise getting rid of his business interests.
Gonzales granted the request but also set the matter for a hearing Friday. Court records said Allen did not show up.
The judge ruled Allen, Allen Financial Agency, and Lubbock-based Landzacha Holdings (also owned by Allen) were “probably insolvent” and not able to pay damages to victims of Ferrum without tapping into the value of Allen’s other companies.
Gonzales also ruled the receiver (Lowe) is likely entitled to recover money for the Ferrum victims – saying in her ruling, “ … the receiver has a probable right to recover relief on the merits from and against Defendants Joshua Allen, Allen Financial, and Landzacha … ”
“ … Without this order, the receivership estate probably will suffer imminent and irreparable injury for which it has no adequate remedy or for which no legal remedy is as efficient as this order. The court finds and concludes that Allen has or controls the ‘Allen Companies’ …”
The order listed the “Allen Companies” as:
- AAC Holdings LLC,
- Hub City Land LLC,
- Quball Holdings LLC,
- WO Amarillo LLC,
- WTX WO Ltd,
- All Accounting Inc.,
- TCS Parents Group Ltd.,
- Undercurrent LLC,
- Transitions Industries LLC,
- RaiderLand Property Management LLC,
- 2 MR-LZ LLC,
- VTC Dev LLC,
- 7 Spur Ranch LLC,
- National ScriptNet LLC,
- Trading Up Lubbock LLC,
- Monarch Executive Protection Services LLC,
- Jet Allen Blacklock LLC,
- WO McKinney LLC,
- AB4J LLC,
- JTWS Ventures LLC,
- GPJD Interest LLC,
- WSRJ Interests LLC,
- JCLZ Interests LLC,
- GJW Partners LLC,
- WO Metroplex Ltd,
- WE Pad I Ltd.,
- Hub City Cantina Ltd.,
- Waco WO LLC,
- WO Colony LLC,
- Fort Worth WO LLC,
- Las Colinas WO LLC,
- LCWO LLC, WTX
- WO LLC,
- CAPB Holdings Ltd.,
- LCWO RE LLC,
- Landzacha LLC,
- Landzacha Holdings Ltd.
Click here to read the order for a temporary injunction.
Friday’s ruling did not take possession of the companies, but Lowe’s request in late May left that possibility open.
