‘Catastrophic’: Lubbock businessmen indicted in connection with fraud scheme

LUBBOCK, Texas — Two Lubbock businessmen, Joshua L. Allen and Mike L. Cox, appeared in federal court on Wednesday in relation to an investment fraud scheme connected to Brooklyn Chandler Willy, a San Antonio advisor who has already been accused of more than a dozen federal charges.

Lubbock connection to investor fraud scheme, FBI and IRS investigating

Court documents stated Allen and Cox were indicted for for their alleged roles in a massive Ponzi fraud scheme with Willy. It was not immediately clear if either were taken into custody on Wednesday.

EverythingLubbock.com previously reported the FBI and IRS Criminal Investigation were conducting a federal investigation into an investor fraud scheme in San Antonio and Lubbock. Willy was accused of wire fraud, aggravated identity theft, making a false statement and tampering with a witness or informant, among other charges. Previously sealed court records stated at Willy’s recommendation, two victims agreed to put money into an investment company based in Lubbock. She approached the two again later, and they agreed to put $500,000 into the Lubbock company. Court documents stated Willy kept the money instead.

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A previous class action lawsuit involving Willy, Cox and Allen stated Ferrum Capitol would get funds from lenders, promising large returns and “safe investments.” The lawsuit said Ferrum would give the funds to Collins Asset Group, who purchased debt that was “sometimes impossible to recover.” The lawsuit said this led to “catastrophic losses.”

One of the victims of these practices told EverythingLubbock.com that she lost almost everything, and now likely won’t be able to retire.

According to the complaint, Collins and Ferrum raised millions of dollars from unsuspecting lenders, when they knew there was no chance they could live up to their promises. The lawsuit said the financial losses were inevitable. Cox filed for bankruptcy in February of 2024, which prevented the class action lawsuit from moving forward…

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