Federal Jury Convicts Joshua Allen and Michael Cox in Multimillion-Dollar Investment Fraud Scheme

A federal jury in San Antonio has convicted Joshua Allen and Michael Cox, both of Lubbock, Texas, on all four felony counts charged against them for their roles in a multimillion-dollar investment fraud scheme involving Ferrum Capital and related entities.

The convictions follow an extensive federal investigation conducted with significant assistance from the Texas State Securities Board's Enforcement Division. As part of the investigation, TSSB Assistant Director Greta Cantwell served as a task force officer with the Federal Bureau of Investigation's San Antonio Division, working alongside federal investigators from the IRS Criminal Investigation and FBI to investigate the securities offerings, trace investor funds, review financial and business records, and develop evidence relating to the alleged fraud.

Following a jury trial in the U.S. District Court for the Western District of Texas, Allen and Cox were each found guilty of conspiracy to commit wire fraud, conspiracy to commit money laundering, conspiracy to launder monetary instruments, and securities fraud. The verdicts were returned on August 18, 2026.

Allen and Cox jointly owned and controlled Ferrum Capital, LLC, Ferrum II, LLC, Ferrum III, LLC, and Ferrum IV, LLC. According to federal court records, Allen, Cox, and others solicited hundreds of investors to invest tens of millions of dollars in the Ferrum entities. Investors were provided false and misleading information about how their money would be used and the safety and security of their investments. Rather than being used as represented, substantial investor funds were diverted to make payments to earlier investors and for the benefit of Allen, Cox, and others.

The investigation required the review and analysis of extensive financial and investment records relating to the Ferrum entities and the investments sold to victims. The TSSB Enforcement Division contributed its experience investigating complex securities offerings and financial fraud to the federal investigation and worked in coordination with the FBI, Internal Revenue Service Criminal Investigation, and the U.S. Attorney's Office for the Western District of Texas.

"This verdict is the culmination of a substantial investigation involving close cooperation between state and federal law enforcement," said Deputy Securities Commissioner Cristi Ramón Ochoa. "The Texas State Securities Board is committed to using its specialized securities expertise to assist our law enforcement partners in identifying investment fraud and holding those who defraud investors accountable."

The convictions follow the guilty plea earlier this year of former San Antonio-based investment adviser Brooklynn Chandler Willy. earlier this year of former San Antonio-based investment adviser Brooklynn Chandler Willy. Willy, the owner of Queen B Advisors LLC, doing business as Texas Financial Advisory was a sales agent for the Ferrum investments. Willy pleaded guilty in March to ten federal felony counts arising from her participation in the Ferrum investment scheme.

The federal prosecution grew out of a coordinated investigation into the activities of Allen, Cox, Willy, and the Ferrum entities. TSSB's participation in the investigation reflects the agency's continuing commitment to working with federal, state, and local law enforcement agencies to investigate securities fraud and protect Texas investors.

Following the verdict, U.S. District Court Judge Fred Biery ordered Allen and Cox remanded into federal custody. Sentencing is currently scheduled for later this year.

The Texas State Securities Board is the state agency responsible for regulating the securities industry in Texas and protecting investors from fraud.

Investors with questions or concerns regarding this matter may contact the TSSB Enforcement Division at [email protected] or 512-305-8392.