Ferrum Capital Lawsuit 2021 Jun 2026
Ferrum Capital was founded in 2017 by Lubbock, Texas businessmen and Michael Cox . Operating through several sequential entities—including Ferrum Capital, Ferrum II, Ferrum III, and Ferrum IV—the firm pitched high-yield promissory notes to retail investors, many of whom were retirees looking for stable returns.
The exposes a massive, multi-million-dollar investment fraud scheme disguised as a lucrative distressed-debt collection program. Initially coming to light through civil actions filed by devastated investors—including major claims tracing back to investments made in 2021 —the scandal has ballooned into a nationwide legal battle involving class-action civil lawsuits, Chapter 7 bankruptcy disputes, and sweeping federal criminal indictments.
The year served as a major timeline anchor for subsequent litigation. During this period, the operators aggressively expanded their reach. According to U.S. Department of Justice filings, San Antonio-based financial advisor Brooklynn Chandler Willy —a core affiliate who promoted Ferrum on her prominent local radio show—steered massive amounts of client capital into Ferrum entities during this specific timeframe. For instance, federal documents highlight a landmark May 2021 transaction where Willy directed a married couple to roll over $500,000 of their retirement funds into a Ferrum entity. ferrum capital lawsuit 2021
. While several major legal actions and indictments reached critical milestones in 2025 and 2026, the roots of the litigation trace back to investments made and defaulted upon in the 2021 timeframe. The Core Allegations Lubbock-based Ferrum Capital, co-founded by Joshua Allen Michael Cox
was reportedly sanctioned and fined for selling these unregistered investments Civil Class Action Lawsuits : Numerous civil suits, including those filed in Bexar County District Court Ferrum Capital was founded in 2017 by Lubbock,
Beginning around 2018, Ferrum Capital and its related entities (Ferrum II, III, and IV) solicited investments by promising over four-year periods.
Here is a comprehensive look at the timeline, the players, and the ongoing legal fallout. The Genesis of the Investment Scheme Initially coming to light through civil actions filed
The scheme reached a critical tipping point in . During this period, Ferrum Capital enticed high-net-worth individuals, retirees, and vulnerable savers with high-yield promissory notes. For example, court records detail a notable case in which a Wisconsin investor suffering from cognitive difficulties was convinced to pour $1 million into a Ferrum Capital note in January 2021 , followed by an additional $1 million in June 2021 .
The criminal cases intensified further when affiliate advisor Brooklynn Chandler Willie reached an agreement with federal prosecutors. Willie pleaded guilty in a San Antonio courtroom to ten federal counts, including six counts of wire fraud. Prosecutors highlighted that Willie not only misled investors but explicitly directed millions of dollars of client funds into her own personal accounts. The Complex Financial Tracing
: A San Antonio-based financial advisor who collaborated with Ferrum. She pleaded guilty in March 2026 to federal charges, including wire fraud and aggravated identity theft.
The year marked a critical turning point in the timeline of Ferrum Capital's legal troubles. During this period, the following events unfolded: