Ferrum Capital Lawsuit 2021 2021 Jun 2026

In November 2025, victims achieved a tangible victory when San Antonio bankruptcy Judge Greg Gargotta ordered the return of $1.175 million to the court-appointed receiver. The money came from Collins Asset Group. While the sum represents only a fraction of what victims lost, it demonstrates that at least some recovery is possible.

, 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

: Investigations revealed that much of the new investor money was used to pay "returns" to earlier investors to maintain the illusion of profitability.

and earlier, when regulatory bodies first began flagging the firm's activities. Key Litigation & Regulatory Actions Texas State Securities Board (TSSB) Sanctions (2020–2021) ferrum capital lawsuit 2021

The legal landscape in 2021 was active on two fronts regarding the key players in the Ferrum Capital saga: the regulatory status of Brooklynn Chandler Willy and a federal investigation into the broader pattern of fraudulent activity.

However, the practical result was clear: By early 2022, Versus had ceased operations, its assets were liquidated or transferred, and its founders walked away with nothing. The company that once ran major fighting game tournaments was no more.

The Ferrum Capital lawsuit 2021 has significant implications for the investment firm and its stakeholders. If the allegations are proven true, Ferrum Capital could face substantial damages and reputational harm. The lawsuit also raises questions about the firm's business practices and whether they acted in the best interests of their clients. In November 2025, victims achieved a tangible victory

Rather than being invested as promised, new investor funds were used to pay "returns" to previous investors—a classic Ponzi characteristic—while the rest went toward the personal expenses of the owners and their associates.

: Promoters failed to disclose that they were taking high commissions—often 8% —and that the investment notes were not registered with state or federal regulators. Key Figures & Criminal Charges

Ferrum Capital LLC (along with its sister entities Ferrum II, III, and IV) was founded in 2017 by Lubbock, Texas-based financial advisors and Michael (Mike) Cox . The firm pitched itself as an alternative investment vehicle. They promised retail investors high, steady returns by pooling money to purchase distressed corporate debt. , purportedly solicited millions of dollars from investors

Ed Price, a seasoned Lubbock attorney now working to help victims recover their money, described the situation as leaving him "disgusted" and pushing up his retirement plans. "I don't understand how you can do that to somebody else, particularly elderly folks — take their life investment and reduce several of them to poverty — make one guy homeless," Price said.

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.

[ Retail Investors ] │ ▼ (Promissory Notes: 8%–10% Return) [ Ferrum Capital LLC ] (Allen & Cox) <─── (Radio Ads & Promos) ─── [ Brooklynn Chandler Willy ] │ ▼ (Master Loan Agreement) [ Collins Asset Group (CAG) ] ───► (Purchased Distressed Debt Portfolios)

The case, formally Ferrum Capital Partners, LP v. Hightower Holding, LLC (21-cv-05061), offers a masterclass in what happens when a “guaranteed” merger turns toxic.