<\/p>\n
A San Antonio federal jury convicted two Lubbock businessmen of four criminal charges in connection with an investment scheme that involved San Antonio financial adviser Brooklynn Chandler Willy.<\/p>\n
San Antonio Express-News file photo<\/p>\n
One-time San Antonio financial adviser Brooklynn Chandler Willy is scheduled to be sentenced Dec. 14 after she entered into a guilty plea rather than stand trial with two Lubbock businessmen. She is shown in 2023 on her television program, which was posted to YouTube.<\/p>\n
YouTube screengrab<\/p>\n
U.S. District Judge Fred Biery ordered Lubbock businessmen Joshua Allen and Michael Cox taken into custody after they were convicted by a San Antonio jury Tuesday.<\/p>\n
Josie Norris\/San Antonio Express-News<\/p>\n
San Antonio investment adviser Brooklynn Chandler Willy\u2019s firm, Texas Financial Advisory, operated from a Stone Oak office before her arrest. The firm closed down after her arrest.<\/p>\n
Patrick Danner\/San Antonio Express-News<\/p>\n
A federal jury has convicted the two men charged alongside former San Antonio financial adviser\u00a0Brooklynn Chandler Willy<\/a> in a multimillion-dollar investment fraud scheme.<\/p>\n Jurors in San Antonio federal court found Lubbock businessmen Joshua Allen and Michael Cox guilty on all four criminal charges after a seven-day trial and about 2\u00bd hours of deliberations.<\/p>\n Article continues below this ad<\/p>\n They were convicted on Tuesday of conspiracy to commit wire fraud, conspiracy to commit money laundering, conspiracy to launder monetary instruments and securities fraud.<\/p>\n The four convictions carry a combined maximum of 75 years in prison, though federal sentencing guidelines and other factors will determine the sentences Allen and Cox ultimately face.<\/p>\n READ MORE: Trial begins for former co-defendants of San Antonio investment adviser Brooklynn Chandler Willy<\/a><\/p>\n San Antonio Express News Logo<\/p>\n Make us a Preferred Source on Google to see more of us when you search.<\/p>\n <\/p>\n Add Preferred Source<\/p>\n <\/a><\/p>\n Assistant U.S. Attorney Joseph Blackwell<\/a> urged U.S. District Judge Fred Biery<\/a> to take Allen and Cox into custody, describing them as men of significant means who face lengthy prison sentences. He also accused Allen of trying to obstruct justice during the trial by presenting one victim with a document bearing a forged signature. Blackwell said the effort failed when the victim said she had never seen the document before.<\/p>\n Article continues below this ad<\/p>\n Biery agreed, ordering federal marshals to take both men into custody rather than release them on bond, as their attorneys requested, pending sentencing on Dec. 10.<\/p>\n After the verdict, the judge had both defendants turn around to address their supporters\u00a0in the courtroom.<\/p>\n \u201cI\u2019m so sorry for putting y\u2019all through this,” Allen said.<\/p>\n \u201cI believe that my God is still on the throne and he is still good,\u201d Cox said.<\/p>\n Article continues below this ad<\/p>\n Blackwell turned the focus to the victims.<\/p>\n \u201cI\u2019m glad justice was done for the victims,\u201d\u00a0Blackwell said outside the courtroom.\u00a0\u201cWe presented about 30, but there are hundreds of people who had their lives destroyed by these schemes. They\u2019re what matters.\u201d<\/p>\n Ponzi scheme<\/p>\n The case grew out of investments that Willy\u00a0recommended to clients through Lubbock-based Ferrum Capital LLC.<\/p>\n Article continues below this ad<\/p>\n Willy, who promoted her financial advisory business on radio, television and online, pitched Ferrum investments to clients as an alternative to traditional investments. Ferrum used investor money to provide funding to Austin-based Collins Asset Group LLC to purchase distressed accounts receivable, also known as bad debt.<\/p>\n Investors received promissory notes that generally promised returns of 8% paid quarterly or 10% annually, with their principal to be returned when the four-year notes matured. Willy assured clients that the investments were safe and secured, according to lawsuits filed by investors.<\/p>\n Allen and Cox jointly owned and controlled Ferrum Capital.<\/p>\n Prosecutors alleged Allen and Cox raised millions of dollars through Ferrum Capital by telling investors their money would be used to finance purchases of distressed debt by Collins. But as the operation ran into trouble, prosecutors said, they turned it into a Ponzi scheme, using money from new investors to pay earlier investors\u00a0\u2014 and to benefit Allen, Cox and Willy.<\/p>\n Article continues below this ad<\/p>\n RELATED:\u00a0Ex-San Antonio financial adviser Brooklynn Chandler Willy pleads guilty in Ponzi scheme<\/a><\/p>\n In his closing argument Tuesday, Blackwell said Allen and Cox had to keep attracting new investors\u00a0\u2014 and concealing how their money was actually being used\u00a0\u2014 to prevent the operation from falling apart.<\/p>\n \u201cWas there a scheme to defraud? Was there an agreement to defraud? Absolutely,\u201d Blackwell told jurors.<\/p>\n \u201cWhy do they need to lie? They needed to lie because they needed to keep investor funds coming in. Otherwise the whole scheme collapses and they stop making money,\u201d he said.<\/p>\n Article continues below this ad<\/p>\n Blackwell added Willy played a significant role because Allen and Cox needed her \u201cto keep funding the money machine.\u201d She was not called to testify at the trial.<\/p>\n Signs that the investments were unraveling emerged in 2023, when some investors stopped receiving interest payments and others said Ferrum failed to repay notes as they matured.<\/p>\n Defense blames Collins<\/p>\n Allen\u2019s lawyer, Anthony Box, blamed Collins Asset Group for the investors\u2019 losses, saying the company stopped returning money and eventually went out of business. \u201cThe majority of the money is God knows where,\u201d Box told jurors. \u201cHopefully, the government is looking into it.\u201d<\/p>\n Article continues below this ad<\/p>\n Box questioned why the government had focused on Allen rather than Collins. \u201cWhy are we here? Where is the investigation of Collins Asset Group?\u201d he asked. \u201cWho took the loss? The people from Lubbock. The people from San Antonio.\u201d<\/p>\n Box added that Allen went to the FBI to urge agents to investigate Collins.<\/p>\n Cox\u2019s attorney, Michael Gross, argued his client had no way of knowing Collins would later fail and pointed to character witnesses who described Cox as honest, truthful and law-abiding.<\/p>\n READ MORE: Fraud claims mount against San Antonio investment adviser Brooklynn Willy, her firm and others<\/a><\/p>\n Article continues below this ad<\/p>\n \u201cIt\u2019s our position that there\u2019s no willful intent to defraud,\u201d Gross said. \u201cThere\u2019s no knowing defrauding and there\u2019s no intentional defrauding by Michael Cox.\u201d<\/p>\n Gross urged jurors to acquit Cox on all counts, saying it would be unfair to hold him responsible for what happened at Collins.<\/p>\n Neither Allen nor Cox testified in his own defense.<\/p>\n Gross described Cox as a man of faith. After the verdict, Biery returned to that characterization and pulled out a Bible.<\/p>\n Article continues below this ad<\/p>\n \u201cBased on the jury\u2019s verdict, do you know what the Ninth Commandment is? Number nine?\u201d Biery asked Cox, who remained silent. \u201cShall not bear false witness.\u201d\u00a0<\/p>\n From lawsuits to guilty plea<\/p>\n<\/p>\n