Joshua Allen and Michael Cox owned and controlled several investment companies that frequently operated under the broader umbrella of Ferrum Capital and Phum Capital. The duo solicited funds from hundreds of individuals, many of whom were nearing retirement and seeking safe, yield-bearing assets.
Collins Asset Group, meanwhile, filed for bankruptcy in Delaware, prompting concerns from victims' attorneys that the proceedings would move to Delaware — a move they described as "right out of the Ponzi scheme playbook". In a favorable ruling for victims, however, Delaware bankruptcy Judge Laurie Selber Silverstein transferred the Collins Asset Group bankruptcy to Texas. ferrum capital lawsuit 2021
Investors alleged that they had entrusted large sums of money to Ferrum Capital to fund specific loans or to act as capital for the company’s lending operations. The lawsuit claimed that instead of using these funds for the intended real estate deals, Ferrum used the money to pay off earlier investors or to cover internal overhead expenses—a classic hallmark of a Ponzi scheme. Joshua Allen and Michael Cox owned and controlled
and earlier, when regulatory bodies first began flagging the firm's activities. Key Litigation & Regulatory Actions Texas State Securities Board (TSSB) Sanctions (2020–2021) In a favorable ruling for victims, however, Delaware
Here is a comprehensive look at the timeline, the players, and the ongoing legal fallout. The Genesis of the Investment Scheme
Lubbock, Texas businessmen founded Ferrum Capital in 2017. Operating through a cluster of interconnected entities—including Ferrum Capital LLC, Ferrum II LLC, Ferrum III LLC, and Ferrum IV LLC—the co-founders pitched a highly lucrative, seemingly low-risk alternative investment strategy. The Pitch: Distressed Debt and High Returns
As attorney Matthew King told KCBD, the case is "going to go a lot farther than we originally thought". With hundreds of victims, tens of thousands of pages of court documents, and a sprawling web of corporate entities, the Ferrum Capital case will likely continue to unwind for years to come.