New bankruptcy records revealed details for people who may lose $80 million or more in Lubbock-based Ferrum Capital.
Collins Asset Group filed bankruptcy this month in Delaware, which we covered here.
Collins owed an “undetermined” amount of money to Ferrum Capital, according to updated bankruptcy records Wednesday. The debt is backed by $7.85 million of collateral in the form of non-performing loans. However, four more companies, not just Ferrum, might have a claim.
People put up money in Ferrum which in turn sent the money to Collins, according to multiple lawsuits. Collins would purchase distressed debt and attempt to collect. Numerous attorneys and legal filings accuse Ferrum and Collins of running a Ponzi scheme.
In the updated bankruptcy records, Collins reserved the right to dispute some or all of the debt owed to Ferrum, which we’ll describe in more detail below.
But Collins also revealed it lost access to its bank accounts on April 17. While the new records do not reveal why, Collins sent notices of bankruptcy to nearly every state attorney general in the United States. Notices were also sent to the departments of justice in three states (Delaware, New Hampshire, and Oregon).
Collins lost access to bank accounts
From the statements in the Collins Statement Financial Affairs:
Statement 3. As of April 17, 2025, CAG lost all access to its bank accounts with Wells Fargo Bank, N.A. As of May 29, 2025, CAG opened a new account with Hancock Whitney Bank but only has the ability to transfer funds from this account via direct request to its bank’s representative and cannot otherwise access this account, including but not limited to electronically. Statement 3 includes any disbursement or other transfer made by CAG within 90 days before the Petition Date except for any made after it lost access to its accounts. CAG made multiple attempts to regain access to its accounts, but at present, it is still unable to fully access its accounts.
Collins disclosed account values totaling less than $150,000 in the Wells Fargo accounts.
Nothing specifically in the bankruptcy records pointed to criminal charges. However, LubbockLights.com was able to tie an FBI investigation to Ferrum last year in this story. One person, Brooklynn Chandler Willy, was charged with a crime in connection with Ferrum. Her indictment for securities fraud and other charges is still pending.
LubbockLights.com reached out to attorneys for Collins, Hollins Holdings and related companies (Oliphant, Inc. Oliphant Financial and Oliphant USA). The attorneys have not accepted our invitation to comment.
Assets and liabilities
Collins claimed to have more than $10 million in assets – nearly all of them classified as accounts receivable. At the same time, it claimed to have a little more than $4,500 in debts and liabilities. It made a statement in the newest records that any money it might owe to Ferrum (other companies like Growth Platforms, LLC; Sill & Associates; Heller Group and Judith Heller; and F&K Partners, LLC) is “disputed, contingent and/or unliquidated.”
“Moreover, listing a claim does not constitute an admission of liability by the Debtors,” attorneys for Collins wrote in the bankruptcy files.
Collins is 100 percent owned by Hollins Holdings, which filed for bankruptcy at the same time as Collins. Hollins listed $0 for both assets and debts on its various bankruptcy schedules. Both secured and unsecured claims were valued at $0.
Collins claimed just shy of $5 million in gross revenue for 2023, $5.5 million in 2024 and nearly $2 million so far for 2025. Operating expenses were not disclosed in the bankruptcy file.
Mike Cox bankruptcy hearing
Meanwhile, a group of Ferrum participants wanted to hold Mike Cox permanently responsible for $10.6 million of debt so that he cannot get rid of it. A Fort Worth bankruptcy judge ruled days ago in their favor, adding to the amount of debt Cox cannot get rid of.
Cox, co-owner of Ferrum with Joshua Allen, filed for bankruptcy in 2024 and listed people who put their money with Ferrum as his debts.
A judge ruled in April Cox cannot discharge $21.7 million of his debt to 66 people or couples because Ferrum Capital illegally sold unregistered securities. The two rulings together put more than $30 million on the books that Cox cannot discharge.
Cox’s total debt might be more than $80 million.
Correction: the original version of this story incorrectly identified when a judge would rule on $10.6 million of Cox’s debt. The judge already ruled. This story was corrected.
