Federal prosecutors announced Wednesday that they will continue to seek the return of millions of dollars lost by investors in the Ferrum Capital Ponzi scheme. The statements were made at a press conference in San Antonio by representatives of the U.S. Attorney’s Office, the Internal Revenue Service and the FBI.
Local impact of a national case
The case centers on two Lubbock residents, Joshua Allen and Michael Cox, who were found guilty of securities fraud after a jury concluded they ran a massive investment scam. The scheme involved four related entities—Ferrum Capital LLC, Ferrum II LLC, Ferrum III LLC and Ferrum IV LLC—through which the defendants solicited funds from hundreds of investors, many of whom were from the Lubbock area.
According to court documents, the fraud raised roughly $80 million, with a conservative estimate that about $50 million was lost by more than 500 victims. Prosecutors say the defendants personally pocketed roughly $9.2 million.
Federal commitment to restitution
U.S. Attorney Justin R. Simmons said the Justice Department’s financial‑litigation and asset‑forfeiture units are dedicated to recovering whatever money can be traced. “We always go after the money and try to recover it,” Simmons said. “We will pursue that as long as it takes.”
When asked whether additional indictments might follow, Simmons declined to comment, stating he would not discuss ongoing investigations.
Victims’ stories
Among the victims is Richard Pickett, a San Antonio man who lost a $500,000 investment he needed for a kidney transplant. Prosecutor Joseph Blackwell noted that the stolen funds directly jeopardized Pickett’s health, saying, “Money is not just money. It’s your life, your future, your grandkids’ future, your retirement, your health at times.”
Other victims described losing life savings, retirement funds and money intended for medical care. Assistant Special Agent Troy Caldron of the IRS Criminal Investigation Texas Field Office emphasized the personal toll, calling the victims “people that never wanted to be heroes of the justice system.”
Legal proceedings
Allen and Cox are scheduled for sentencing on Dec. 10 and will remain in custody until that date. Their San Antonio affiliate, Brooklynn Chandler Willy, pleaded guilty earlier this year and will be sentenced four days later. The defense chose not to introduce Willy’s plea deal at trial, focusing instead on arguments about the evidence.
Assistant U.S. Attorney Blackwell praised the jury’s verdict, noting that close to 30 victims testified and that the evidence, including detailed financial analysis presented by Special Agent Rebecca Jones, was overwhelming.
Looking ahead
While the convictions mark a significant step toward accountability, federal officials acknowledge that full restitution may take years. The Justice Department’s asset‑forfeiture unit will continue to trace funds account‑to‑account and pursue judgments against any parties who still hold the stolen money.
For Lubbock investors, the ongoing effort offers a measure of hope that justice will be served and that the community can begin to recover from the financial devastation caused by the Ferrum fraud.
Original reporting: Lubbock Lights — read the source article.
