Crime
Lubbock Pair Faces Up to 70 Years in Prison Following Federal Ponzi Conviction - Texas Border Business
A federal jury in San Antonio convicted two Lubbock men Tuesday for running a massive Ponzi fraud scheme through four investment companies they jointly owned and controlled. Joshua Allen and Michael Cox were found guilty alongside already-convicted co-defendant Brooklynn Chandler Willy of San Antonio.
Joshua Allen and Michael Cox were found guilty alongside already-convicted co-defendant Brooklynn Chandler Willy of San Antonio. According to court documents and evidence presented at trial, the three solicited victims to invest in Ferrum Capital LLC, Ferrum II LLC, Ferrum III LLC, and Ferrum IV LLC. Willy, who owned Chandler Capital Holdings and Queen B Advisory LLC, pleaded guilty to 10 counts back in March.
Allen and Cox now face up to 70 years in federal prison. The conviction came out of the Western District of Texas, with the U.S. Attorney's Office prosecuting the case. For anyone in Lubbock who put money into any of the Ferrum entities, the verdict at least confirms what happened, even if recovering those funds is a separate fight.
Federal Ponzi cases rarely move fast. Willy's guilty plea months before trial likely gave prosecutors a significant edge when Allen and Cox chose to fight the charges in front of a jury. Sentencing has not been scheduled yet.
Common questions
Who are the Lubbock men convicted in the Ferrum Capital Ponzi scheme?
- Joshua Allen and Michael Cox, both of Lubbock, were convicted by a federal jury in San Antonio for running a Ponzi fraud scheme through four companies: Ferrum Capital LLC, Ferrum II LLC, Ferrum III LLC, and Ferrum IV LLC. A third co-defendant, Brooklynn Chandler Willy, had already pleaded guilty.
How much prison time do Joshua Allen and Michael Cox face?
- Allen and Cox each face up to 70 years in federal prison following their conviction in the Western District of Texas. Their co-defendant, Brooklynn Chandler Willy of San Antonio, pleaded guilty to 10 counts in March ahead of the trial.
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