SAN ANTONIO, Texas (KCBD) – Two Lubbock businessmen left the San Antonio U.S. Courthouse in handcuffs, remanded into custody after a jury convicted them on all counts. It found Joshua Allen and Michael Cox, through Ferrum Capital, and related companies, preyed on many investors, using misdirection and forgeries, to rip off victims in a massive Ponzi scheme.
On the seventh day of this trial, a jury found Allen and Cox guilty of wire fraud, money laundering, laundering monetary instruments and securities fraud. This complicated case involved an estimated $60 million and roughly 500 investors, according to prosecutors.
It is not clear where the money went. As we have reported through our Testing Trust series, some victims said they lost every cent invested; in some cases, this was their life savings.
The jury returned with a verdict around 2:45 p.m. Tuesday. U.S. District Judge Fred Biery heard prosecutors’ argument that both men were a flight risk, and ordered Allen and Cox be taken into custody. They are not eligible to post bail.
Joshua Allen (left) and Michael Cox, in separate photos, outside the federal courthouse in San Antonio Aug. 10, 2026. (KCBD)
Before they were taken, both men spoke in court.
To his family and victims, Allen said “I’m so sorry for putting you all through this.”
Speaking to his family, Cox said “I believe that my God is still on the throne and He is still good.”
Victims’ reaction
Retried Lubbock dentist Jay Adkins spoke with KCBD in March 2025, as a plaintiff in a class action lawsuit filed against Allen and Cox. Adkins said he recorded a conversation he had with Allen, and provided it to the KCBD Investigates Team.
During the roughly 18-minute recording, Adkins can be heard asking Allen, “What would cause [the investment] to have a problem?”
Allen responds, “We are both Christians.”
Adkins said, “Right.”
“It would take Jesus coming back,” Allen said.
Allen went on to say, “This is one of the safest things out there.”
Adkins said his attorney sent the recording to the FBI, who set up a call. Adkins said he gave Allen nearly $500,000.
That was last year. Today KCBD spoke with Adkins in San Antonio, following the verdict.
“Duane Allen was my CPA for 41 years, then Josh [Allen] came in and started working with him the last few years, so I trusted Duane.”
Adkins testified at the trial.
“I was skeptical enough when I read the contract about the risk, that I wanted to talk to Josh again. And I just happened to put my recorder in my pocket and recorded the conversation. And I’m glad I did, because some things came out of that that were beneficial for the jury to hear,” Adkins said Tuesday.
Victims Jay Adkins (on left in suit) and Susan and Terry Hunter (right) celebrate the verdict Aug. 18, 2026 outside the Federal Courthouse in San Antonio.(Kase Wilbanks / KCBD)
Susan and Terry Hunter were also victims.
“Just elated, justice was done,” Susan Hunter said Tuesday afternoon. “We’ve been told, just hang in there, the system works, and it did today. The truth was told and it was presented well by the whole team, did a wonderful job.
“And I just pray for relief for all the victims now,” Hunter said.
Investors in Ferrum Capital told the jury last Wednesday their signatures were forged on documents. One witness for the Justice Department said he did not sign contracts on file with the firm, worth as much as $258,000.
A second witness said she agreed to invest $250,000 in a different business. Because she was injured at the time, Allen filled out a check for her and left the “pay to” line blank. The company reported that money went to Ferrum Capital instead. She told the jury she has not received any of that money.
A federal indictment handed up in July 2025 accused the men of misleading investors, concealing high commissions, and lying about the nature of investments.
U.S. Attorney Joseph E. Blackwell told the jury during opening arguments Aug. 10 the two men created a money-making machine that needed a constant flow of investors to keep it running.
Allen’s attorney told the court during opening arguments that a business can fail without it being a crime. He blamed a third party — a company called Collins Asset Group — for the scheme, and said Allen went to the IRS and FBI to ask them to investigate that company.
Cox’s attorney told the jury his client never took a single dollar from investors for personal use.
Following this conviction, both men face up to 70 years in prison.
AUG. 12: Ferrum Capital investors testify signatures were forged, trial underway in San Antonio
AUG. 10: Trial begins for Lubbock men accused in multimillion-dollar investment scheme
Co-defendant’s earlier plea
Their co-defendant Brooklyn Chandler Willy, of San Antonio, earlier pleaded guilty. At her plea hearing in March, she said “I was a crook. I’m very sorry. I will do anything in my power to right what I can.”
Willy pleaded guilty to six counts of wire fraud, along with charges of aggravated identity theft and conspiracy. The judge asked Willy directly what drove her conduct. She attributed it to greed.
“So the devil of greed overcame the angel of conscience? Is that a fair analysis?” Judge Biery asked.
“Yes, Your Honor,” Willy said.
When asked about the aggravated identity theft count — which involved forging victims’ signatures — Willy said she had pangs of conscience at the time but continued anyway.
“Why did you do it?” the judge asked.
“I don’t have an answer. I’m very sorry,” Willy said.
Sentencing
Judge Biery has scheduled sentencing for Allen and Cox December 10. Willy’s sentencing is scheduled for December 14.
Civil cases
Separate civil lawsuits have been filed against Allen and Cox, accusing them of defrauding dozens of clients. Read about those cases, and hear from several people who said they lost money to Ferrum Capital, in our yearslong Testing Trust series.
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