Although the most publicized legal actions occurred later, court documents highlight critical events from 2021 that formed the basis for subsequent lawsuits and indictments:
: Prosecutors and civil litigants allege that Ferrum operated as a Ponzi scheme ferrum capital lawsuit 2021
What began as localized civil claims has since escalated into a massive federal inquiry, resulting in criminal indictments, high-profile guilty pleas, and class-action lawsuits. At the center of the controversy are allegations of a multi-million-dollar Ponzi scheme, unregistered securities sales, and the diversion of hundreds of millions of dollars from hundreds of victim-investors. Although the most publicized legal actions occurred later,
Lubbock, Texas businessmen and Michael Cox founded Ferrum Capital in 2017. They designed the operation to solicit retail investor capital primarily throughout the Lubbock region, while relying on their high-profile San Antonio business affiliate, Brooklynn Chandler Willy , to channel millions of dollars from central Texas. They designed the operation to solicit retail investor
The lawsuit did . In December 2021, Ferrum Capital and the defendant reached a confidential settlement . The terms were not disclosed publicly, but typical resolutions in such cases include:
The scheme reached a critical tipping point between 2018 and 2021. Promoted heavily by San Antonio-based financial advisor and radio host through her firm Queen B Advisors (doing business as Texas Financial Advisory), Ferrum brought in massive capital. Court documents reveal that a significant volume of alternative investments were funneled or "rolled over" into Ferrum entities during this window.