Local News
Ferrum Capital victims say justice was served - KCBD
A San Antonio jury found former Lubbock financial advisors Josh Allen and Michael Cox guilty in the Ferrum Capital fraud case, which bilked roughly 500 investors out of at least $50 million. Ferrum Capital raised $80 million total from investors, according to investigators.
Ferrum Capital raised $80 million total from investors, according to investigators. Of that, $9.2 million went directly into Allen and Cox's pockets. The scheme involved forged documents used to keep victims' money locked into the fraud.
Holly and Butch Boyd, two of those victims, made the trip to San Antonio to watch the verdict come in. Holly Boyd testified for the prosecution, speaking specifically about the forged documents used against her. "We wouldn't have missed it," she said about attending the trial.
For the roughly 500 people who trusted Allen and Cox with their savings, the guilty verdict closes a chapter with no guarantee of getting their money back. Fraud cases like this tend to end with convictions but rarely full restitution, and conservative estimates already put the unrecovered losses at $50 million.
Lubbock produced the scheme and the victims, but it took a San Antonio courtroom to deliver the verdict.
Common questions
What did Josh Allen and Michael Cox do in the Ferrum Capital case?
- Allen and Cox, former Lubbock financial advisors, defrauded roughly 500 investors out of at least $50 million through Ferrum Capital. They used forged documents to keep victims' money locked in the scheme and personally pocketed $9.2 million of the $80 million raised.
How much money did Ferrum Capital take from investors?
- Ferrum Capital raised $80 million total from investors, and at least $50 million was lost to the fraud. Of that, $9.2 million went directly into the pockets of Allen and Cox, according to investigators.
Stay in the loop
Weekly Lubbock news, deals, and events. Free.