The scheme allegedly involved enticing investors with promises of 8% to 12% interest rates on promissory notes. Specific 2021 incidents cited in legal documents include:
April 12, 2026
Founded in 2017 by Joshua Allen and Michael Cox, Lubbock-based Ferrum Capital solicited hundreds of investors with promises of safe, high-yield returns ranging from 8% to 10%. ferrum capital lawsuit 2021
For Ferrum, it was a hedged bet—profit if the deal works, a huge fee if it doesn’t. For Hightower, it was a necessary evil to secure the cash. and securities fraud. Brooklynn Chandler Willy
: The Lubbock-based owners of Ferrum Capital who were eventually indicted in July 2025 for conspiracy to commit wire fraud, money laundering, and securities fraud. Brooklynn Chandler Willy ferrum capital lawsuit 2021