Ferrum Capital Lawsuit 2021 -

Lawsuits filed in Lubbock and San Antonio, Texas, detail instances where investors poured millions into the scheme as late as June 2021, only to receive no returns on their principal or interest. Key Figures and Entities

The scheme reached a critical tipping point in . During this period, Ferrum Capital enticed high-net-worth individuals, retirees, and vulnerable savers with high-yield promissory notes. For example, court records detail a notable case in which a Wisconsin investor suffering from cognitive difficulties was convinced to pour $1 million into a Ferrum Capital note in January 2021 , followed by an additional $1 million in June 2021 .

Collins now faces ongoing legal efforts from Ferrum's court-appointed receiver to recover funds.

The house of cards began to visibly crack when the pipeline connecting Ferrum Capital to Collins Asset Group fractured. Of the roughly that Ferrum originally funneled to CAG, the debt collector managed to pay back only $19.4 million in interest and fees before completely defaulting in late 2023 . ferrum capital lawsuit 2021

: 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.

Ferrum Capital was founded in 2017 by Lubbock, Texas businessmen and Michael Cox . Operating through several sequential entities—including Ferrum Capital, Ferrum II, Ferrum III, and Ferrum IV—the firm pitched high-yield promissory notes to retail investors, many of whom were retirees looking for stable returns.

The lawsuit claims that Ferrum Capital:

The legal saga, which gained significant public attention starting in 2021, centers on a massive Ponzi scheme that defrauded hundreds of investors out of millions of dollars. The 2021 Catalyst

Promising high, fixed annual returns between 8% and 10%, the defendants pitched these vehicles as secure, fully backed positions. They told clients that their money was being used strictly by third-party agencies to buy up underpriced, distressed consumer debt portfolios for pennies on the dollar and collect the balances for high margins.

The legal proceedings surrounding and its principals, Joshua Allen and Michael Cox Lawsuits filed in Lubbock and San Antonio, Texas,

While Ferrum faced various disputes over the years, the 2021 era was marked by aggressive litigation from investors who claimed their capital had been misappropriated. The core allegations included:

As of the lawsuit's filing, the plaintiff had never received any return of his principal or any interest payments — despite having been promised substantial returns through a complex lending structure.

The lawsuit filed in 2021 provides a critical, early glimpse into the specific tactics used. A lawsuit filed by a plaintiff from Wisconsin, which was tracked down by the KCBD Investigates Team, details two significant investments made that year. For example, court records detail a notable case

This article explores the details of the Ferrum Capital lawsuits, the key players involved, the allegations of fraud, and the ongoing efforts to recover funds for hundreds of victims. What Was Ferrum Capital?