Ferrum Capital Lawsuit 2021 Jun 2026
reportedly advised a couple to invest into a Ferrum entity. Investigators later discovered these funds were never sent to Ferrum but were used for Willy's personal expenses, such as credit card payments. November 2021 :
Many investors have lost their entire retirement or life savings, and the legal processes involved in trying to recover even a fraction of the money are complex and slow. The FBI continues to seek victims of the scheme and has set up a questionnaire for those who believe they were defrauded.
, despite suffering from cognitive difficulties at the time. : Federal prosecutors allege that Brooklynn Chandler Willy ferrum capital lawsuit 2021
: If convicted on all charges, Allen and Cox face up to 70 years in prison .
: Lawsuits later detailed that by June 2021, some individual investors—including those with cognitive difficulties—were still being encouraged to invest millions despite the scheme's mounting instability. reportedly advised a couple to invest into a Ferrum entity
: In July 2025, Joshua Allen and Michael Cox turned themselves in to federal authorities after being charged in federal court with running a "massive Ponzi fraud scheme" that cost hundreds of people millions of dollars. They are scheduled for a jury trial that is yet to commence. In March 2026, Brooklynn Chandler Willy pleaded guilty to ten federal charges, including six counts of wire fraud and aggravated identity theft, and she faces up to 20 years in prison on each of the wire fraud charges.
Post-2021, investors realized that massive breakup fees create perverse incentives. Why work to close a hard deal when you can collect $5 million for its failure? Many term sheets now cap breakup fees at actual expenses, not fixed bonuses. The FBI continues to seek victims of the
and San Antonio federal court, accuse the defendants of defrauding over 400 investors of between $67 million and $100 million Federal Indictments (2025) Joshua Allen Michael Cox Brooklynn Chandler Willy
While the civil and criminal cases extend from 2021 through 2026, the heart of the matter is the core operation of Ferrum Capital.
