The prosecution presented a large number of financial documents in the Ferrum Capital trial, which they claim prove a scheme by Joshua Allen and Michael Cox. The documents, explained by an IRS special agent and several witnesses who lost money, allegedly show how money was funneled into Ferrum and then used to pay previous investors or taken by the defendants.
Defense Strategy
The defense attorneys cross-examined the witnesses, questioning parts of their testimony and attempting to sow seeds of doubt in the minds of the jurors. They also suggested that Ferrum itself may have been a victim of fraud.
A key witness, Cody Herndon, testified that he had invested $275,000 with Allen, who was his financial and spiritual advisor. Herndon claimed that he had not been aware of the details of the investment and had trusted Allen to handle it.
The prosecution presented documents showing that Herndon’s money had been funneled into Ferrum entities, but Herndon disputed the authenticity of some of the documents. The defense suggested that Herndon’s lack of research and due diligence may have contributed to his losses.
The trial is ongoing, with more witnesses expected to testify in the coming days.
Original reporting: Lubbock Lights — read the source article.
