Cox filed for bankruptcy in February 2024 in Lubbock, listing nearly 400 people or businesses to whom he owed money — most for "loan to Ferrum Capital." The amounts ranged from $10,000 to $2.5 million, adding up to $59 million. However, victims have filed their own claims, bringing the total closer to $69 million — and some estimates go even higher. Cox listed assets of about $1.2 million.
Ferrum Capital LLC (alongside its subsequent iterations Ferrum II, III, and IV) was founded in 2017 by Joshua Allen and Michael Cox. The firm pitched an alternative investment strategy focused on "distressed debt". ferrum capital lawsuit 2021
The setup was classic 2021. Hightower Holding, a platform for insurance and financial services, had agreed to merge with a SPAC. To fund the deal, Hightower lined up a PIPE (Private Investment in Public Equity) financing package. Cox filed for bankruptcy in February 2024 in
: 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 Hightower Holding, a platform for insurance and financial
Ferrum Capital Lawsuit 2021: Inside the Alleged Multi-Million Dollar Ponzi Scheme