LUBBOCK, Texas (KCBD) – A court-appointed receiver is asking a judge to immediately freeze the assets of a Lubbock man accused in lawsuits of helping run a massive Ponzi scheme that may have devastated more than 300 investors.<\/p>\n
The U.S. Attorney for the Western District of Texas and multiple civil lawsuits describe the operation as a Ponzi scheme that devastated hundreds of investors, many of whom trusted Lubbock financial advisors with their retirement savings. The receiver appointed to oversee the wreckage of Ferrum Capital and its entities is asking a Bexar County judge to immediately freeze the assets of Joshua Allen, one of the company\u2019s principals.<\/p>\n
Defendant invoked Fifth Amendment more than 490 times<\/p>\n
When Allen was deposed about the scheme, he refused to answer questions, invoking his Fifth Amendment right against self-incrimination more than 490 times.<\/p>\n
Court documents include a portion of the transcript from that earlier deposition. Among the questions he refused to answer: whether Ferrum Capital was a Ponzi scheme, whether he pocketed approximately $13 million from investors, and whether he, together with Mike Cox and Brooklynn Chandler Willy, took in approximately $68 million from investors and if they ever intended to repay it.<\/p>\n
Receiver claims millions in fraudulent transfers<\/p>\n
In court documents, the receiver states his forensic accountant confirmed Ferrum Capital was a Ponzi scheme and that Allen received millions of dollars in fraudulent transfers from the scheme. The receiver also claims Allen caused $11 million in damages to the Ferrum companies and at least $50 million in damages to investors.<\/p>\n
Receiver John Patrick Lowe is asking a San Antonio judge to lock down more than 40 companies Allen allegedly owns or controls, ranging from land holdings and property management firms to restaurants and security companies. The receiver wants a temporary restraining order issued immediately, followed by a temporary injunction and ultimately a permanent one.<\/p>\n
Separate receivership recently discharged<\/p>\n
The urgency comes down to timing. A judge granted the discharge of a separate receivership protecting Allen\u2019s assets in Lubbock County\u2019s 72nd Judicial District Court last month, which means Allen is free to move those assets, potentially leaving hundreds of victims with nothing to recover. The receiver calls that threat imminent.<\/p>\n
The court has not yet ruled on this request. A judge is expected to set a hearing on the temporary injunction. KCBD reached out to Joshua Allen for comment. He referred the station to his attorney, Nick Olguin, who declined to comment.<\/p>\n
In February, Willy pleaded guilty to 10 federal felony counts associated with this scheme. She will be sentenced in September. Allen and Cox were also indicted on federal counts. Their trial is scheduled to begin in August, with any potential plea agreements due July 31.<\/p>\n
This story is part of KCBD\u2019s ongoing investigative series, Testing Trust. It is based solely on court documents filed in Bexar County District Court, Case No. 2023CI22575.<\/p>\n
Previous Stories:<\/p>\n
Testing Trust: Criminal trial delayed for Lubbock businessmen Joshua Allen and Michael Cox<\/a><\/p>\n Testing Trust: Joshua Allen, co-defendants ordered to pay back Walk-On\u2019s investors<\/a><\/p>\n Testing Trust: Another family claims to have lost hundreds of thousands to Lubbock\u2019s Ferrum Capital<\/a><\/p>\n Testing Trust: Suits accuse Lubbock financial advisors of operating Ponzi scheme<\/a><\/p>\n Testing Trust: Many fear everything lost in alleged Ponzi scheme<\/a><\/p>\n Testing Trust: KCBD obtains additional lawsuits filed against Lubbock financial advisors<\/a><\/p>\n