Brooklynn Chandler Willy, formerly an affiliate of Lubbock-based Ferrum Capital, pleaded guilty Thursday on 10 federal charges.
Those charges were:
Wire fraud (six counts)
Monetary transactions from unlawful activity
Aggravated identity theft
Conspiracy to commit wire fraud
Conspiracy to commit money laundering.
Willy and Lubbock businessmen Joshua Allen and Michael Cox were accused of stealing millions of dollars from hundreds of victims – mostly in Texas but other states as well. Criminal charges remained pending for Allen and Cox Thursday.
While the criminal charges did not use the term Ponzi scheme to describe the Lubbock investment company, numerous lawsuits across Texas did.
Willy’s first indictment in late 2024 included charges of obstruction and making a false statement to the FBI and aggravated identity theft. She was reindicted in early 2025, then indicted one more time alongside Allen and Cox for securities fraud and other charges in mid-2025.
The FBI and IRS opened a 2023 criminal investigation in San Antonio and Lubbock, her first indictment said. When the FBI asked her questions about victims who lost money in Ferrum, she lied, according to her first indictment.
Willy’s sentencing was scheduled for September 28. That’s after Allen and Cox are scheduled for trial in August.
The court docket indicated a plea agreement exists, however, it was not yet available from the federal court system website at the time of this report. This story will be updated when possible to reflect details of the agreement.
Most of the charges against Willy carry a maximum penalty of 20 years and can be served concurrently – meaning she could serve all the sentences at the same time for a lower total time behind bars. However, aggravated identity theft is an exception. It carries a mandatory two year consecutive sentence – meaning she would have to serve that time above and beyond any other sentence.
Timeline
2017
Allen and Cox started Ferrum Capital.
2018-2022
Ferrum collected money from people in the form of interest-bearing notes at 8-10 percent interest. Company insiders were taking a percentage, according to documents filed in criminal cases.
Ferrum loaned most of the money to Collins Asset Group, an Austin-based debt collection company. Later lawsuits would claim the business model was never profitable.
2020
Willy was fined by state regulators and ordered to pay back commissions. Regulators ruled she was selling unregistered securities.
2023
First-round Ferrum investors are paid back with interest by recruiting a new round of investors. Using new investors to pay previous investors becomes the basis of “Ponzi scheme” claims in various lawsuits. Insiders are taking a percentage. Willy, Allen and Cox “lied about their high commissions, [and] lied and misled about the collateral securing the investments,” criminal case records said.
FBI and IRS began a criminal investigation.
Collins Asset Group defaulted on its loan payments to Ferrum in July, according to one of the lawsuits filed in San Antonio. Ferrum then defaulted to its investors. A series of lawsuits began in October 2023.
2024
Cox filed for bankruptcy. The registry in the case listed $82 million in claims. Later court records would refine the number to $67 million.
A federal grand jury in San Antonio issued the first indictment in the case.
2025
The most recent indictment named Willy, Allen and Cox together.
Collins Asset Group filed for bankruptcy.
Feds update charges against Willy in Lubbock-based Ferrum Capital case, could take her assets
Josh Allen may lose companies as one impact from receivers working on Walk-On’s, Ferrum cases
Ferrum criminal trial – Allen, Cox and Willy – pushed back until next year
Ferrum detour to Delaware ends; what that means for victims in Lubbock, San Antonio
‘Finally … in shackles’ – Ferrum victims ‘ecstatic’ about criminal charges against Allen and Cox
Attorneys trying to recover money in Ferrum cases concerned about legal processes moving to Delaware
Two companies tied to Ferrum and securities fraud FBI investigation go bankrupt
Cox deal to keep his house approved but some of his bankruptcy protections lost
New bankruptcy judge appointed in Lubbock – to oversee cases across much of West Texas
‘They robbed people blind,’ says upset Lubbock attorney representing dozens in Ferrum Capital case
Ferrum was taken into receivership by a judge in San Antonio (in January 2024) during one of the lawsuits. Attorneys for the victims and the court-appointed receiver continue their efforts to recover money for the victims.
LubbockLights.com covered the story extensively since December 2024. Use the story links above or click here to see our coverage.
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