A lawyer in San Antonio asked a judge to stop Lubbock businessman Joshua Allen, Allen Financial Agency and Lubbock-based Landzacha Holdings (owned by Allen) from selling or disposing of “valuable” rights or assets last week.
The judge granted the temporary restraining order with a further court hearing on the matter set for June 12.
Brief background
Allen and Michael Cox are currently under federal indictment for securities fraud and other charges. The two co-founded Ferrum Capital in Lubbock – a company accused of conducting a Ponzi scheme – taking $68 million from 300 or more victims according to court records.
Their San Antonio business affiliate Brooklynn Chandler Willy took a plea deal this year and will be sentenced in September.
In a separate but related matter, Allen was successfully sued in Lubbock for a failed venture in the Amarillo location of Walk-On’s Bistreaux. LubbockLights.com reported on the recovery effort in that case here. A court appointed receiver in Lubbock, Max Tarbox, was granted permission to take control of most of Allen’s business assets to collect $835,000. The Lubbock receivership ended on May 8.
Ferrum victims sued in late 2023 in San Antonio. In that lawsuit, Ferrum Capital has been under a different court-ordered receiver, John Patrick Lowe.
Ferrum victims filed several lawsuits. In one of them, a judge took control of Ferrum Capital away from co-founders Allen and Michael Cox. A court appointed receiver, John Patrick Lowe, has been trying to track down money to pay back all Ferrum victims – not just the ones in a San Antonio lawsuit.
Lowe’s recent request – filed by his attorney, Royal Lea – said, “Allen caused the Ferrum companies damages of at least $11,000,000. He caused Plaintiffs in this case damages of at least $50,000,000.”
Lowe hired a forensic accountant and his report, according to the request, “establishes that Ferrum Capital was a Ponzi scheme and that Allen received millions of dollars in fraudulent transfers from the Ponzi scheme.”
“When called on to testify about Ferrum Capital, the Ponzi scheme and fraud on investors, and his role in the scheme and fraud, Allen refused to answer questions pleading the Fifth Amendment more than 490 times,” the request said.
Why now?
Allen’s various business interests had been tied up until recently in a Lubbock lawsuit (see our brief background section). Now that the Lubbock case is wrapped up, the request said Allen’s business assets could be transferred.
“[Lowe] does not seek to force the sale of the Allen Companies or the Allen Related Assets at this time,” the request said.
But the request made it sound like that could change.
“Without the injunctive relief requested here, Allen is free to transfer, dispose of, and dissipate the Allen Companies and Allen Related Assets, leaving the hundreds of victims of his crimes and civil frauds with nothing to recover,” Lowe’s request said.
Lowe believes, according to his request, Allen still owns valuable rights or interests in a long list of companies plus valuable real estate.
Court records said:
“The Receiver believes Allen owns valuable rights, equity, and value in the following entities or companies, which the Receiver refers to as the ‘Allen Companies’:”
- AAC Holdings LLC
- Hub City Land LLC
- Quball Holdings LLC
- WO Amarillo LLC
- WTX WO Ltd
- All Accounting Inc.
- Slam-Dunk Food LLC
- Slam-Dunk Food #2 LLC
- TCS Parents Group Ltd.
- Urbanair Waxahachie LLC
- Undercurrent LLC
- ProfitRAN Enterprises, Inc.
- 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
- Workout Unit 64 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
- All Accounting Inc.
- DRRD LLC
- X-Bros LLC
- WO Metroplex Ltd
- WE Pad I Ltd.
- Hub City Cantina Ltd.
- Waco WO LLC
- WO Colony LLC
- Fort Worth WO LLC
- Las Colina WO LLC
- LCWO LLC
- WTX WO LLC.
