News
Prosecutors detail scope of multimillion-dollar Ponzi scheme after Allen, Cox found guilty
Summary by The Lubbock Editorial Desk · Based on reporting by Kase Wilbanks , KCBD News
· August 19, 2026
· 2 min read
SAN ANTONIO, Texas (KCBD) - Federal prosecutors and investigators outlined the scope of the Ferrum Capital investment fraud case a day after a jury found Joshua Allen and Michael Cox guilty on all four counts. The U.S. Attorney’s Office, the IRS Criminal Investigation division and the FBI held a ...
Key takeaway Over the course of the Ferrum Capital Ponzi scheme investigation, officials found about $80 million was raised, $50 million was lost, more than 500 investors were involved and about $9 million was used by Allen and Cox for personal use.
Why this matters in The Lubbock
The guilty verdict in the Ferrum Capital investment fraud case has significant implications for the Lubbock community, where some of the victims were likely residents. The fact that Allen and Cox abused the trust of friends and family, using their faith and reputation to con investors, is particularly disturbing. This case highlights the need for vigilance and skepticism when dealing with investment opportunities, especially those that seem too good to be true. The impact of the scheme, which resulted in $50 million in losses, will likely be felt by local families and businesses. As the sentencing phase approaches, Lubbock residents will be watching to see if justice is served and if any efforts are made to recover the lost funds. The case also serves as a reminder of the importance of thorough investigation and prosecution of white-collar crimes, which can have devastating effects on local communities.
About this story
Original reporting by KCBD News . The Lubbock selects stories from publishers’ feeds, summarises them, and links back to the publisher that reported them. We add no reporting of our own. We attribute every source, link to the original report, and follow a documented editorial standards policy. To understand how stories are selected and reviewed, read our about page .
For the complete original report, visit KCBD News . Have a tip or correction? Contact the editor .
Category: News ·
Published: August 19, 2026 ·
Source: KCBD News ·
Reading time: 2 min
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Frequently asked about this story
What is this story about? SAN ANTONIO, Texas (KCBD) - Federal prosecutors and investigators outlined the scope of the Ferrum Capital investment fraud case a day after a jury found Joshua Allen and Michael Cox guilty on all four counts. The U.S. Attorney’s Office, the IRS Criminal Investigation division and the FBI held a ...
When was this published? This article was first published on August 19, 2026 by KCBD News and curated for The Lubbock readers.
Who reported this story? This story was reported by Kase Wilbanks at KCBD News. To learn more about how The Lubbock selects and reviews stories, see our editorial standards .
Where can I find related coverage? See more News coverage from The Lubbock, or browse our daily briefing and topic hubs .
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