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Michael Cox (left), Joshua Allen (center) and Brooklynn Chandler Willy (right) <\/p>\nReceiver\u2019s attorney says millions have been recovered, but unresolved litigation continues to delay payments to investors.<\/p>\n
A Bexar County judge has awarded more than $13 million to the receiver trying to recover money for Ferrum Capital investors, another step toward possible repayment for victims of the multimillion-dollar investment fraud.<\/p>\n
The judgment also awards more than $29 million to individual investors and comes weeks before the December sentencings of convicted Ferrum Capital figures Joshua Allen and Michael Cox.<\/p>\n
Previous court records identified more than 300 victims and approximately $67 million in losses connected to Ferrum Capital.<\/p>\n
Royal Lea, attorney for court appointed receiver John Patrick Lowe, told Lubbock Lights the receivership has already collected approximately $3 million. He also said courts often consider a defendant\u2019s willingness to repay victims when determining punishment.<\/p>\n
\u201cI think in general, courts often look to willingness to make reparations. That\u2019s certainly a factor courts often consider in sentencing,\u201d Lea said.<\/p>\n
It\u2019s something like the end of a chapter, but not the end of a book. <\/p>\n
Patrick Lowe<\/p>\n
Lea did not predict whether repayment would influence the federal judge in this case. Allen and Cox are scheduled for sentencing December 10, while Brooklynn Chandler Willy, who previously pleaded guilty to related federal charges, is scheduled for December 14.<\/p>\n
Judge signs multimillion dollar judgment<\/p>\n
Lubbock Lights obtained the 24 page judgment directly from Lowe. Judge Norma Gonzales of the 131st Judicial District Court electronically signed it October 13, 2026.<\/p>\n
A receiver is a neutral party a court appoints to oversee assets, recover money and manage those funds under court supervision.<\/p>\n
The judgment had not appeared on the public court docket when Lubbock Lights prepared this report. Lea said he had not personally reviewed the document or confirmed whether the district clerk had filed it, although judgments generally take effect when signed.<\/p>\n
\u201cI\u2019m pretty darn confident from everything I\u2019ve heard that there really is a judgment,\u201d Lea said.<\/p>\n
The court awarded Lowe $11,819,919 against Joshua L. Allen, Allen Financial Agency Inc. and Landzacha Holdings Ltd., holding all three jointly and severally liable.<\/p>\n
The judge separately awarded $1,238,352 against Willy.<\/p>\n
Together, the awards give Lowe the right to pursue $13,058,271, plus applicable interest, from the defendants. The judgment does not establish whether they have enough assets to pay.<\/p>\n
\u201cA litigant can\u2019t even begin to try to collect money until they have a judgment,\u201d Lea said.<\/p>\n
Millions recovered, but investors still waiting<\/p>\n
Lea said the receivership has collected approximately $3 million.<\/p>\n
\u201cI can tell you that the receiver currently has collected approximately $3 million in the receivership,\u201d Lea said.<\/p>\n
He also reported that separate bankruptcy proceedings have recovered approximately $6 million. Those funds remain separate from the receivership\u2019s money, and Lea could not say how much might eventually reach Ferrum investors.<\/p>\n
\u201cI am optimistic when, and I have no idea when will be, whenever the bankruptcy trustee distributes money, much of that money will come to the Receiver,\u201d Lea said.<\/p>\n
A pending New York state court lawsuit involving Metropolitan Partners and Ferrum Capital remains one obstacle to distributing the money already collected.<\/p>\n
\u201cThe receiver can\u2019t distribute any of the money until all of the claims against Ferrum are resolved,\u201d Lea said.<\/p>\n
Lea said ongoing bankruptcy disputes involving Metropolitan Partners and other parties could affect how much additional money the receiver recovers for Ferrum Capital investors.<\/p>\n
Investors awarded more than $29 million<\/p>\n
The judge also awarded individual investors more than $29.1 million under Texas securities law.<\/p>\n
That includes more than $22 million against Allen and his associated companies, and another $7.1 million against Brooklynn Chandler Willy and her company, Queen B Advisors, which operated as Texas Financial Advisory.<\/p>\n
Michael Cox (left), Joshua Allen (center) and Brooklynn Chandler Willy (right) <\/p>\n
Some of these awards cover the same investments included in the receiver\u2019s $13 million judgment. That means the amounts cannot simply be added together, and a court award does not guarantee investors will receive the money.<\/p>\n
The judge also awarded investors interest on their losses at 6% annually from the dates they invested, plus 6.75% annual interest after the judgment.<\/p>\n
Recovery efforts continue<\/p>\n
The October 13 judgment leaves several claims to separate proceedings, including claims involving companies associated with Michael Cox.<\/p>\n
Lea said the ruling brings the receiver closer to concluding claims against Allen and Willy, but the broader recovery effort continues.<\/p>\n
\u201cIt\u2019s something like the end of a chapter, but not the end of a book,\u201d Lea said.<\/p>\n
Lowe expects to submit another quarterly report to the court later this month, according to Lea.<\/p>\n
Despite the money already recovered, Lea could not predict when investors might receive payments or how much of their losses they could recover.<\/p>\n
Asked what he would tell those investors, Lea offered a brief message.<\/p>\n
\u201cBe patient. I know that\u2019s hard.\u201d<\/p>\n
\n\tRelated\n<\/p>\n
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