Ferrum Capital Lawsuit 2021 Page

Investors were explicitly told their money was safe, secure, and fully collateralized.

, purportedly solicited millions of dollars from investors with promises of safe, high-return promissory notes. The Scheme : Investors were typically promised 8% to 10% annual returns . The company claimed these funds were loaned to Collins Asset Group

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

Promissory notes were marketed via radio, television, and direct consultations, promising fixed 8% to 10% annual returns over a four-year maturity period. ferrum capital lawsuit 2021

Beyond the warning of Bank's conviction, 2021 also saw Ferrum Capital actively raising and misappropriating investor funds. A lawsuit filed on behalf of a Wisconsin plaintiff in 2025 details that two of the victim's largest investments were made in 2021 with funds from a man who had recently suffered a stroke and was having cognitive difficulties. The lawsuit claims that in January and June of 2021, the plaintiff invested a total of $2 million in promissory notes issued by a Ferrum entity. The court documents allege that the plaintiff "has never received any return of his principal or interest payments".

: Lawsuits filed in states like Wisconsin claim that Ferrum Capital entities solicited and received multi-million dollar investments in 2021. For instance, one plaintiff reportedly invested $1 million in January 2021 and another $1 million in June 2021

: During this period, Ferrum Capital was actively transferring investor funds to Collins Asset Group , a debt collection company. Forensic reports indicate CAG received approximately $50 million from Ferrum through February 2022. Key Figures and Legal Allegations Investors were explicitly told their money was safe,

Joshua Allen and Mike Cox founded Ferrum Capital in 2017. Operating through multiple entities—including —the firm pitched a highly secure, high-yield opportunity to everyday investors.

In 2021, the Texas State Securities Board (TSSB) was actively investigating Willy. The TSSB's records show that in 2019, Willy was terminated from J.W. Cole for "violation of firm policies regarding participation in unapproved private securities transactions". Later, when Willy tried to register with the Securities Commissioner as an investment adviser representative, the TSSB claimed that she failed to disclose her involvement in selling alternative investments and was never properly registered as a dealer. These findings were part of a longer history of regulatory concern that would later be central to the allegations against her.

While the civil lawsuits between lenders played out in court, 2021 was also a year of increased regulatory scrutiny for the private credit sector. The disputes involving Ferrum Capital highlighted a lack of transparency that often plagues the private placement market. The company claimed these funds were loaned to

At the center of the scheme's mechanics was Collins Asset Group (CAG), an Austin-based debt collection company. According to court records and a forensic accounting report, Ferrum loaned approximately $47.6 million of its investors' money to CAG, which in turn was supposed to purchase distressed debts at deep discounts and collect on them for substantial profits. CAG paid back $19.4 million in interest and fees before defaulting in late 2023 — a default that triggered Ferrum's collapse.

The most explosive allegation was that the defendant had knowingly misrepresented the status of the underlying litigation. Ferrum claimed that the defendant had provided forged "case status reports" showing the case was still in discovery when, in fact, settlement negotiations had already concluded. Ferrum argued it would never have advanced the funds had it known the true timeline.

By late spring 2021, the merger was on life support. The SPAC market was cooling off from its Q1 frenzy, and regulatory scrutiny was rising. The drop-dead date passed. The deal died.