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Ferrum Capital's Allen, Cox now await fate in federal Ponzi scheme case - Lubbock Avalanche-Journal
Joshua Allen and Michael Cox, two Lubbock men behind Ferrum Capital, were convicted Tuesday by a San Antonio federal jury on charges of conspiracy to commit wire fraud, conspiracy to commit money laundering, conspiracy to launder monetary instruments, and securities fraud in connection with a massive Ponzi scheme. The jury found both men guilty on all counts.
The jury found both men guilty on all counts. Allen and Cox had been free on bond while the case worked its way through the courts, but after the verdicts were read, the judge ordered them taken into custody on the spot.
The two are scheduled to appear December 10 before U.S. District Judge Fred Biery for sentencing. Combined, the charges carry up to 70 years in federal prison.
For anyone in Lubbock who invested with Ferrum Capital or knew someone who did, Tuesday's verdict closes the question of guilt but opens a longer wait to see what punishment actually looks like. Ponzi scheme victims rarely recover what they lost, and a sentencing hearing sets the prison term but does not guarantee restitution. Federal judges weigh guidelines and circumstances before handing down a final number.
Common questions
When will Allen and Cox be sentenced and how much prison time do they face?
- The two are scheduled to be sentenced December 10 before U.S. District Judge Fred Biery in federal court. Combined, the charges they were convicted on carry a maximum of 70 years in federal prison. Both men were taken into custody immediately after the verdict was read.
Are Allen and Cox still free while they wait for sentencing?
- No. Allen and Cox had been out on bond throughout the trial, but the judge ordered them taken into custody on the spot after the jury returned guilty verdicts on all counts. They will remain in custody until their December 10 sentencing hearing.
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