: In May 2021, financial advisor Brooklynn Chandler Willy allegedly advised clients to invest $500,000 into a Ferrum entity.
Versus filed the lawsuit on April 9, 2021, seeking a temporary restraining order (TRO) against Ferrum. The complaint painted a picture of a classic “loan-to-own” scheme:
The controversy, which surfaced significantly in 2021, centers on allegations of a massive Ponzi scheme led by Lubbock-based financial advisors Joshua Allen and Michael Cox , alongside San Antonio-based associate Brooklynn Chandler Willy . The 2021 Investment Surge ferrum capital lawsuit 2021
The year marked a critical turning point in the timeline of Ferrum Capital's legal troubles. During this period, the following events unfolded:
reportedly advised a couple to invest into a Ferrum entity. Investigators later discovered these funds were never sent to Ferrum but were used for Willy's personal expenses, such as credit card payments. November 2021 : : In May 2021, financial advisor Brooklynn Chandler
The Ferrum Capital fraud followed a pattern familiar to Ponzi scheme investigators. The company raised money from investors by promising high returns — typically around 10 percent annual interest — through a lending program that supposedly backed Collins Asset Group's debt purchasing operations. Investors were told their funds were secured by collateral and perfected security interests. In reality, according to the FBI, Allen, Cox, and Willy "misled investors by promising investors significant returns on their investments while downplaying the risk involved with the highly speculative investments, lying about Allen, Cox, and Willy's high commissions, and lying about the collateral securing Ferrum investments".
However, the investment structure was complex and involved four distinct entities under the Ferrum umbrella: , Ferrum II LLC , Ferrum III LLC , and Ferrum IV LLC . The 2021 Lawsuit and Allegations The 2021 Investment Surge The year marked a
The Wisconsin case was just the beginning. As the number of plaintiffs grew nationwide, so did the total amount in question, with San Antonio attorney Matthew King noting the potential for losses to reach "$100 million or more" for his clients alone.
Disclaimer: This article is for informational purposes only and does not constitute legal advice. Case details are based on publicly available court records from 2021. For legal guidance on litigation funding or contract disputes, consult a qualified attorney.
