Ten people who invested in Ferrum Capital – with most of them losing money – testified Wednesday in the government’s case against Joshua Allen and Michael Cox in San Antonio federal court.
Joseph Blackwell, assistant United States attorney, asked them if they were told:
Their money would be used to pay previous investors.
About fees and commissions.
About a 2020 class-action lawsuit against the Collins Asset Group, which bought distressed debt with money from Ferrum investors.
All of them said they did not know – and if they did, they wouldn’t have invested.
Defense attorneys cross examined witnesses on how they didn’t know about things that were in documents. The answer for many was they trusted Allen and Cox until that changed later.
“He called it a sure bet and likened it to a CD,” Amanda Coburn testified about Cox. Blackwell asked her if she was told about the CAG lawsuit.
“That would have been a major red flag,” she said.
Randy Sparks, Coburn’s father, later testified Wednesday, saying if he knew Collins’ previous investors got half back in their lawsuit against Collins, he would not have invested.
Sparks, Coburn and other family members went with Cox to Austin for a meeting with CAG leadership to feel better about their investment before problems began.
The Collins lawsuit was not disclosed, Coburn said.
Read our series on Ferrum
LubbockLights.com covered Ferrum for more than a year-and-a-half.
Click here to see our series of stories.
August 11, 2026
August 10, 2026
August 7, 2026
August 6, 2026
Willy sentencing delayed – part of Ferrum Capital criminal case
August 3, 2026
July 30, 2026
July 21, 2026
Judge denies Allen’s request to push back criminal trial set for August 10
July 2, 2026
No plea deal and none expected in Ferrum case as Allen seeks delay and prosecutors balk
June 19, 2026
June 12, 2026
Ferrum Capital investors have until September 3 to file a claim — here’s how
June 4, 2026
June 1, 2026
Collection efforts against Joshua Allen in Walk-On’s case successfully completed
May 15, 2026
May 13, 2026
Ferrum victims may have one place to file claims if judge approves at May 19 court hearing
April 28, 2026
April 15, 2026
April 13, 2026
March 23, 2026
March 19, 2026
Feds update charges against Willy in Lubbock-based Ferrum Capital case, could take her assets
March 4, 2026
February 4, 2026
Josh Allen may lose companies as one impact from receivers working on Walk-On’s, Ferrum cases
November 25, 2025
November 21, 2025
November 7, 2025
October 8, 2025
Ferrum criminal trial – Allen, Cox and Willy – pushed back until next year
September 5, 2025
Ferrum detour to Delaware ends; what that means for victims in Lubbock, San Antonio
July 29, 2025
July 24, 2025
July 16, 2025
‘Finally … in shackles’ – Ferrum victims ‘ecstatic’ about criminal charges against Allen and Cox
July 10, 2025
Witnesses discuss what they did when concerns began
Charlie Harper got connected with Ferrum Capital through its San Antonio affiliate Brooklynn Chandler Willy. He later wrote a letter to get out of his contract.
To follow up he got online, found a phone number, Cox answered and said he’d get back to him, Harper said.
The money was tied up in overseas banks, Harper said he was told. Then Harper started talking to Cox every two weeks in January, he said.
“After a dozen phone calls, I said, ‘I want my money,’” he said, adding he was told interest would be paid up to November.
“I wanted it through April,” he said.
The money was transferred.
Richard Pickett said he talked to Cox, who said he needed to talk to Allen – but added he had a hard time connecting with Allen.
Ann Stafford talked to Cox, who told her they hired attorneys to go after Collins Asset Group to get money back.
“I wanted my money back,” she said, adding Cox stopped responding.
Pamela Herndon sent Allen a text in May 2024, saying she needed to get her money. On May 28 she was told CAG has issues causing them to be delinquent and, “It’s like pulling teeth. We are being very forceful with them,” Allen texted in screenshots of the texts shown in court.
Holly Boyd said, “When everything hit the fan, I started calling and could not get return calls.”
Witnesses question validity of documents
Herndon – whose son Cody Herndon testified Tuesday – thought her $250,000 check was going to North American Annuity, but it went to Ferrum.
“No idea it was going to Ferrum,” she said.
She also questioned if she signed a document shown in court – “The signature is similar, but I’ve never seen the document and it’s not my signature.”
Bert Hanigan watched as Blackwell produced a document showing money from his Provident account went into Ferrum II, but Hanigan said it was not his signature on the document.
Eddie Mendoza, one of Allen’s attorneys, asked Hanigan on cross-examination about the signature.
“It’s not my signature,” Hanigan said.
“Do you know who forged it?” Mendoza asked.
“How would I know who forged it?” Hanigan said.
Judge Fred Biery told Mendoza to move on.
Boyd also said it was not her signature on a document.
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Sparring
Anthony Box, Allen’s lead attorney, cross-examined Coburn, addressing her comment she was not told about commissions, saying Cox told her they get paid when Collins pays Ferrum. Coburn was concerned the commissions cut the amount working for her.
Box said Coburn would still get 100 percent of the note’s value.
“Had I got my money back,” Coburn said.
Sparks admitted on cross-examination from Mendoza, “I did not review documents like I should have.”
“It’s important to review …” Mendoza started to say, when Sparks shot back: “I’m not a child, son. If I knew they were going to steal my money I would have.”
As a fiduciary, Sparks said Cox should have explained more. (A fiduciary is someone who manages money or property for another.)
“Mike had a Bible on his desk, and I thought it was nice,” said Sparks, adding they connected on faith and how they saw the world.
“Now I have different thoughts but won’t get into that today,” he said.
Derek Younkers, Allen’s third attorney, cross-examined Herndon.
Younkers pointed out Herndon said a lot of unflattering things about Allen on social media. The word despicable was brought up.
“What he did to me and my family was despicable,” she said.
Herndon has also been very active – and outspoken – on LubbockLights.com’s Facebook posts about Ferrum coverage.
GoldStar
Jeff Worley, a senior vice president with GoldStar Trust – a custodian service specializing in self-directed IRAs – testified as a prosecution witness.
GoldStar had Ferrum investments in their system. And when Ferrum had problems, GoldStar temporarily suspended working with Ferrum.
Blackwell showed a series of communications between Worley, his colleagues and Ferrum about when money would come from Europe to get people paid, which eventually it was.
Wednesday’s witnesses
Amanda Coburn
Residence: Lubbock
Career: Estate planning attorney
Invested: $200,000
Why: Her father knew Mike Cox and trusted him.
Return: None
Charlie Harper
Residence: San Antonio
Career: Retired after working for H-E-B grocery company
Invested: $386,262
Why: Knew Brooklynn Chandler Willy, Ferrum Capital’s San Antonio affiliate
Return: $467,377
Richard Pickett
Residence: San Antonio
Career: Boat repair shop
Invested: $500,000
Why: Knew of Brooklynn Chandler Willy from TV and radio and went to talk to her. Wanted funds to help pay for kidney transplant.
Return: None
Ann Stafford
Residence: Lubbock
Career: Recently retired from nursing
Invested: Approximately $50,000
Why: Met Mike Cox at church.
Return: None
Bert Hanigan
Residence: East Texas
Career: Oil and gas consultant
Invested: $300,000
Why: Connections to Allen family
Return: None
Pamela Herndon
Residence: Lubbock
Career: Insurance
Invested: $250,000
Why: Son was close friend of Josh Allen
Return: None
Randall Sparks (Amanda Coburn’s father)
Residence: Lubbock
Career: Retired after sales manager at John Deere dealership
Invested: $2.5 million
Why: Reference from a friend to Mike Cox, wanted money for retirement.
Return: None
Errol Glenn Archer
Residence: Las Vegas, formerly Lubbock
Career: Attorney
Invested: $2.3 million
Why: Connections to the Allen family
Return: Approximately $70,000
Holly Boyd
Residence: Lubbock
Career: Medical billing for family practice doctor
Invested: $165,000 along with her husband
Why: Josh Allen married their daughter’s friend
Return: $40,000
David Ernst
Residence: Lubbock
Career: Texas Tech faculty
Invested: Two annuities
Return: Hired counsel when he received a message from Mike Cox that there might be some problems with the investment. His lawyer and their lawyer worked out a settlement.
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