A federal jury in San Antonio has convicted Joshua Allen and Michael Cox, both of Lubbock, Texas, on all four felony counts for their roles in a multimillion-dollar investment fraud scheme. The jury found them guilty on August 18, 2026, of conspiracy to commit wire fraud, conspiracy to commit money laundering, conspiracy to launder monetary instruments, and securities fraud.
Allen and Cox jointly owned and controlled Ferrum Capital, LLC, Ferrum II, LLC, Ferrum III, LLC, and Ferrum IV, LLC. According to court records, they and others solicited hundreds of investors to invest tens of millions of dollars in these entities. Investors received false and misleading information about how their money would be used and the safety of their investments. Rather than being deployed as promised, substantial investor funds were diverted to make payments to earlier investors and to benefit Allen, Cox, and others.
The investigation involved extensive coordination between the Federal Bureau of Investigation, IRS Criminal Investigation, and the U.S. Attorney's Office for the Western District of Texas. The Texas State Securities Board's Enforcement Division contributed its securities expertise, with Assistant Director Greta Cantwell serving as a task force officer with the FBI's San Antonio Division.
The convictions follow the guilty plea earlier this year of Brooklynn Chandler Willy, a San Antonio investment adviser and owner of Queen B Advisors LLC. Willy pleaded guilty in March to ten federal felony counts for her participation in the Ferrum scheme as a sales agent.
Following the verdict, U.S. District Court Judge Fred Biery ordered Allen and Cox remanded into federal custody. Sentencing is scheduled for later this year.