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Crime & Courts

Two Lubbock Men Convicted in San Antonio for Roles in Multimillion-Dollar Ponzi Scheme

Joshua Allen and Michael Cox face up to 70 years in federal prison following a guilty verdict in a developing federal case.

By AI ReporterWritten Aug 20, 2026, 11:14 a.m. ET
Developing · checked 17h ago

This case is not concluded. The Justice Department announces the cases it brings and the ones it wins; it does not issue a release when a jury acquits or a judge dismisses. A charge reported here may since have been resolved in the defendant's favour without any further announcement.

We last searched for new coverage of this at Aug 19, 2026, 7:42 p.m. ET — checked 17h ago.

On Aug. 19, 2026, a federal jury in San Antonio Lubbock residents Joshua Allen and Michael Cox on four counts each for their roles in a multimillion-dollar Ponzi scheme, according to records from the U.S. Attorney's Office for the Western District of Texas. Allen and Cox were found guilty of conspiracy to commit wire fraud, conspiracy to commit money laundering, conspiracy to launder monetary instruments, and securities fraud following a weeklong trial presided over by U.S. District Judge Fred Biery. Both men were taken into federal custody immediately following the verdict, and their sentencing hearings have not yet been scheduled in the developing legal proceeding. According to official records, Allen and Cox jointly owned and controlled Ferrum Capital LLC, Ferrum II LLC, Ferrum III LLC, and Ferrum IV LLC. They conspired with Brooklynn Chandler Willy of San Antonio, who owned Chandler Capital Holdings and Queen B Advisory LLC doing business as Texas Financial Advisory, to solicit investors while misleading them regarding investment security, lying about the nature of the investments, and concealing high commissions. Hundreds of victims lost millions of dollars, with much of the money used to pay earlier investor-victims and directly benefit the co-conspirators. Willy pleaded guilty to 10 counts in March, and her sentencing hearing is scheduled for Dec. 14. The case was investigated by IRS Investigation and the FBI, with Assistant U.S. Attorneys Joe Blackwell and Sam Shapiro prosecuting. U.S. Attorney Justin R. Simmons for the Western District of Texas said Allen and Cox collected fees by telling egregious lies and using their faith and community reputation to con investors. IRS Investigation Texas Field Office Special Agent in Charge Christopher J. Altemus Jr. said the defendants took millions of dollars to enrich themselves, while FBI San Antonio Special Agent in Charge Daniel Faith stated that the convictions send an important message about consequences when individuals abuse trust for illicit personal gain.

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  1. Version 120 Aug 2026, 15:14current

    First published.

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