The fallout from Ferrum Capital's collapse has resulted in a tangled web of legal battles spanning across Texas and beyond.
for conspiracy to commit wire fraud, money laundering, and securities fraud Guilty Plea : On March 20, 2026, Brooklynn Chandler Willy pleaded guilty to 10 counts of investment fraud , including her role in the 2021 Ferrum transactions. Department of Justice (.gov) Key Players in the Scheme
In reality, the underlying investments were highly speculative and lacked the stated collateral. Furthermore, the orchestrators completely concealed that they were extracting —reaching as high as 8% per transaction—to enrich themselves and finance personal expenses. The Systemic Collapse: Default and Bankruptcy
: 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 lawsuit 2021
, using funds from new investors to pay "interest" to earlier ones. Much of the capital was allegedly used for the personal expenses of the founders and their associates. Timeline of Recent Legal Milestones
: Promoters, including San Antonio radio host Brooklynn Chandler Willy, allegedly told victims their principal and profits were guaranteed with no risk of loss. The 2021 Turning Point
The Wisconsin case was just the beginning. As the number of plaintiffs grew nationwide, so did the total amount in question, with San Antonio attorney Matthew King noting the potential for losses to reach "$100 million or more" for his clients alone. The fallout from Ferrum Capital's collapse has resulted
Lubbock, Texas businessmen Joshua Allen and Michael Cox founded Ferrum Capital in 2017. Alongside their primary San Antonio affiliate, Brooklynn Chandler Willy—who operated Texas Financial Advisory and hosted local radio segments—the group systematically solicited retail investors across Texas and surrounding states. The False Pitch
Investors were told that their money was being used to fund short-term promissory notes or corporate loans. These funds were supposedly transferred to , an Austin-based debt collection company owned by Walt Collins. CAG was slated to buy distressed consumer debts for pennies on the dollar and collect them, yielding a promised 8% to 12% return for Ferrum’s clients.
At the heart of the lawsuit was a dispute over a loan agreement. Omni Partners had extended a significant line of credit to Ferrum Capital, intended to be used for bridge financing for Ferrum’s portfolio companies. According to court filings, Omni Partners alleged that Ferrum Capital defaulted on this credit facility. Much of the capital was allegedly used for
While the courts work to deliver justice in the Ferrum Capital affair, the case remains a stark reminder of the necessity of financial vigilance, rigorous regulatory compliance, and the severe, life-altering consequences of investment fraud.
The "Ferrum Capital lawsuit 2021" is not an isolated case; it is an early chapter in a much larger story of an alleged massive investment fraud. The main players are: