Brooklynn Chandler Willy stands to lose her home, estimated at $4.3 million (according to tax records), and whatever cash and assets federal officials gather from her if she’s convicted in the latest round of criminal charges against her.
Prosecutors filed an update to her criminal case last week, which included their intention to take certain property if she’s convicted.
Joshua Allen
The case is tied to Lubbock-based Ferrum Capital and two Lubbock businessmen – Joshua Allen and Michael Cox. The three are accused of using Ferrum “to steal millions of dollars from hundreds of victims.” The victims come from all over the nation but were concentrated in Lubbock and San Antonio, according to official records.
San Antonio-based Willy was first indicted in late 2024. She was then reindicted (securities fraud and other charges) along with Allen and Cox – cofounders of Ferrum – in 2025, which LubbockLights.com covered extensively here.
The latest charges are:
Wire fraud (six counts)
Engaging in monetary transactions in property derived from specified unlawful activity
Aggravated identity theft
Conspiracy to commit wire fraud
Conspiracy to commit money laundering
Willy’s cases from 2024 and 2025 were on track to likely be combined into one for a plea deal, according to the San Antonio Express News roughly a month ago. Her 2024 case has a March 13 deadline for a plea agreement.
“We’re in negotiations with Ms. Willy…,” the Express News quoted U.S. Attorney Joseph Blackwell as saying in a court hearing in San Antonio.
One example – false line of credit
The latest charges tell the story of six victims. One example – victims 1 and 2 are a married couple who live in the Western District of Texas (which stretches from El Paso to east of Waco and includes San Antonio).
“At Willy’s recommendation, in or around March of 2018, victim 1 and victim 2 invested money into an investment company based in Lubbock, Texas named Ferrum Capital,” the newest court record said.
The value of the 2018 investment was not disclosed. There was another round in 2021.
“[They] agreed to invest $500,000 into an entity controlled by the owners of Ferrum Capital through two notes of $250,000 each,” court records said.
These were loans or “notes” at 12 percent interest for one and three years respectively. Court records said the two were supposed to get a contract with Ferrum. But that’s not what happened.
“This check was deposited into the Chandler Capital bank account controlled by Willy. The $500,000 was never sent to Ferrum Capital or any other company owned or controlled by the owners of Ferrum Capital. Instead, Willy used this money for her own purposes, including payments to a credit card …,” court records said.
The 2021 money never went to Ferrum.
In November 2023, the FBI and IRS began a criminal investigation. Willy was ordered to turn over records which included a revolving line of credit with victims 1 and 2.
“In truth, the revolving line of credit agreement and promissory note were false. Neither victim 1 nor victim 2 signed the false revolving line of credit agreement and false promissory note nor agreed to their terms,” court records said.
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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
Lubbock connection and accusations of money laundering
Allen and Cox remain charged from a July indictment. The new round of charges against Willy mentioned the two and accused them of conspiracy to launder money.
“Approximately $926,000 of investor funds were funneled to Willy through a third-party to conceal the source of the funds,” court records said.
Michael Cox
“Allen, Cox, Willy and others acting at their direction, lied and misled investors concerning the nature of the investments into the Ferrum Entities, lied about their high commissions, lied and misled about the collateral securing the investments, and lied and misled about the security of the investments,” court records said.
While the newest criminal charges against Willy do not use the term Ponzi scheme, numerous lawsuits have.
Overall the criminal case described it this way.
“The second round of investors lost most or all of their investment while Allen, Cox, Willy and others made millions collectively.”
court records
“The investor agreed to lend money to Ferrum Capital for the purpose of Ferrum Capital lending that money (alone or in aggregate with other investors) to an Austin, Texas-based affiliated company (‘Debt Buying Company’),” court records said
The Austin company wasn’t named, but lawsuits and bankruptcy records revealed it as Collins Asset Group.
Collins used Ferrum money to purchase bad debts and collect them – or at least try to collect them. If it worked, the whole thing would make money. But lawyers in the various lawsuits claimed this model was never going to work and was a scheme from the beginning.
Allen, Cox and Willy recruited new investors to pay back the old ones, the new round of criminal charges claimed.
“The second round of investors lost most or all of their investment while Allen, Cox, Willy and others made millions collectively,” court records said.
U.S. District Judge Fred Biery issued an order Tuesday for Willy to show up in court on March 17. LubbockLights.com will continue to monitor court records for a plea deal between now and the March 13 deadline.
If convicted on all counts, the statutory maximum for Willy would be more than 170 years. The actual sentence would depend on the outcome of a plea bargain or a trial.
LubbockLights.com was able to find records on Willy’s 7,400-square-foot home. It was (and still is) the subject of a 2020 bank lien.
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