Ferrum Capital Lawsuit 2021 ❲RELIABLE❳

Ferrum Capital lawsuits involve allegations that owners Joshua Allen Michael Cox , along with affiliate Brooklynn Chandler Willy , operated a massive Ponzi scheme through various Lubbock-based Ferrum entities

Missing Disclosures: 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 lawsuit 2021

Potential Implications

No subsequent class-action or major lawsuits against Ferrum Capital (as of 2023-2025) have gained similar public attention. Brian Ferrario continues to operate Ferrum Capital Partners, focusing on other industries. Versus Games’ founders largely left the esports public eye. Usury risk is real

For Litigation Finance Firms:

• Usury risk is real. Even sophisticated funders can find themselves defending against usury claims if their return structure resembles a loan rather than a true investment.
• Lien perfection is non-negotiable. Ferrum’s partial victory on lien priority proved that ambiguous or poorly tracked liens can be exploited by desperate borrowers.

Specifically, the lawsuit alleged that Ferrum Capital had overstated the returns on several of its investment funds, and that the company had failed to disclose significant risks associated with these investments. The plaintiffs also alleged that Ferrum Capital had engaged in a practice known as "churning," in which the company would rapidly buy and sell securities in order to generate commissions, rather than to benefit the investors. Specifically, the lawsuit alleged that Ferrum Capital had

Investment Nature: The firm claimed funds would be used to purchase distressed debt portfolios through the Collins Asset Group (CAG).