LUBBOCK, Texas (KCBD) – Two Lubbock investors say they have recovered their money after a court-appointed receiver struck an $835,000 deal to buy out businessman Joshua Allen\u2019s share in nine companies.<\/p>\n
The investors say their checks are in hand, covering their initial investment plus post-judgment interest. It took nearly a year and a legal hunt for assets.<\/p>\n
\u201cYou know, it\u2019s like scratching a lottery ticket and going, wow, the last number matched,\u201d Chance Britt said.<\/p>\n
Britt just cashed a check for money he fought to get after a 2018 investment went sour.<\/p>\n
\u201cIt\u2019s been a long road. It\u2019s been a lot of years,\u201d Britt said.<\/p>\n
Legal battle and trial<\/p>\n
Britt and investor Crow sued Allen last year, saying Allen recruited them in 2018 to invest in expanding a restaurant franchise.<\/p>\n
Crow invested $150,000. Britt invested more than $500,000.<\/p>\n
When the case went to trial last June, they testified they never saw a dime.<\/p>\n
\u201cIt\u2019s kind of like a mouse in a mousetrap. I don\u2019t even want the cheese anymore. I just went out of the trap,\u201d Crow said.<\/p>\n
The judge ordered Allen to pay back their investments plus post-judgment interest.<\/p>\n
But months passed, and they still had not been paid.<\/p>\n
The judge put a court-appointed receiver in charge of Allen\u2019s non-exempt assets, including his stakes in multiple companies.<\/p>\n
By March, the receiver reached a buyout deal for Allen\u2019s stake in nine companies, clearing the way for repayment.<\/p>\n
Britt and Crow say that by the end of May, they had their money.<\/p>\n
\u201cWhen I got that check in my hand, I immediately went straight to the bank,\u201d Crow said.<\/p>\n
Federal indictment<\/p>\n
About a month after the civil trial, Allen and others were indicted in a separate federal case. They are accused of running a multi-million-dollar Ponzi scheme through a company called Ferrum Capital and its entities.<\/p>\n
Investors in that case have filed their own civil lawsuits. Crow says some of those investors are his clients.<\/p>\n
\u201cIt\u2019s bittersweet for me. Yes, I was lucky enough to get my money back \u2014 but I don\u2019t know it\u2019s going to be the same for my clients. And that\u2019s a hard pill to swallow,\u201d Crow said.<\/p>\n
Allen\u2019s attorney declined to comment. The federal court proceedings are scheduled for August.<\/p>\n
One of Allen\u2019s business affiliates, Brooklynn Chandler Willy, pleaded guilty in March to 10 federal felony charges. Her sentencing is scheduled for September.<\/p>\n