Two Former Advisors Found Guilty Of Conspiring With Radio Host On Ponzi Scheme
Two former Texas advisors face decades in prison after they were found guilty by a federal jury of engaging in what authorities called a “massive Ponzi scheme” that also involved another convicted former advisor and radio personality, Brooklynn Chandler Willy.
Joshua Allen and Michael Cox, both of Lubbock, were convicted on Tuesday of conspiracy to commit wire fraud, conspiracy to commit money laundering, conspiracy to launder monetary instruments, and securities fraud. They face up to 70 years in prison, according to a news release from the U.S. Attorney’s Office, Western District of Texas. The men were indicted on the charges in July 2025.
The release also said the men were taken into federal custody immediately following the verdict. The sentencing hearings are pending.
Willy of San Antonio is scheduled to be sentenced in December. She pleaded guilty in March to six wire fraud charges, wire fraud conspiracy and money laundering. “She also faces up to 10 years for engaging in monetary transactions in property derived from the wire fraud scheme and a mandatory minimum of two years in prison for aggravated identity theft, which, by statute, would run consecutive to any other punishment,” the release said.
Prosecutors said Allen and Cox jointly owned and controlled four investment companies: Ferrum Capital, Ferrum II, Ferrum III, and Ferrum IV., for which they, along with Willy, solicited funds.
Willy owned Chandler Capital Holdings and Queen B Advisory LLC (doing business as Texas Financial Advisory (TFA)), which prosecutors said, “among other services, purported to provide asset management and financial planning services.” She also was a media personality, appearing on KTSA radio and other channels, and was the host of the Texas Financial Advisory Show podcast on iHeart Media.
Prosecutors said in court papers that the three co-conspirators worked together “to mislead the victims concerning the security of the investments and concealed their high commissions,” and Allen and Cox misrepresented “the nature of the investments.”
Investors were told that their money was “safe, secure and collateralized,” according to the indictment document. “Allen even told one victim it would take ‘Jesus coming back’ for there to be a problem with his investment into Ferrum Capital.”
As a result, prosecutors said “hundreds of victims collectively lost millions of dollars.” According to KBCD News in Lubbock, investigators said the scheme involved about 500 investors and raised roughly $80 million. “Conservative estimates show at least $50 million was lost across roughly 500 victims, and $9.2 million went directly into Allen and Cox’s pockets,” the local news station reported.
Prosecutors said Allen, Cox and Willy concealed the scheme by using much of the money to pay “earlier investor-victims.” They also used much of the funds to their benefit.
“In the midst of this Ponzi scheme, Allen and Cox collected a handsome fee by telling various egregious lies, even using their self-proclaimed faith and reputation in their community to con the investors they victimized,” U.S. Attorney Justin R. Simmons said in a statement.
Christopher J. Altemus Jr., special agent in charge of the Internal Revenue Criminal Investigation Texas Field Office, said “the case took years to unravel.”
Allen and Cox preyed on their closest friends, their community, and many others across the country. They took millions of dollars to enrich themselves while devastating lives along the way. To say they violated trust is grossly insufficient—they destroyed it.”
