Judge Denied Release for Lubbock Businessmen
A federal judge rejected requests from two men convicted of fraud to be released while awaiting their sentencing.
Updated on Oct. 5, 2026 in Financial Crime
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Judge Fred Biery has denied a release request for Lubbock businessmen Michael L. Cox and Joshua L. Allen. Both men remain in custody following their convictions related to Ferrum Capital.
Why it matters
The court rejected the defense arguments that attempted to use the defendants' Christian beliefs as a justification for their release. Judge Biery argued that their actions during the fraud scheme were antithetical to the faith they cited.
Michael L. Cox and Joshua L. Allen were found guilty of conspiracy to commit money laundering and securities fraud related to Ferrum Capital. The pair remains in federal custody until their sentencing date.
The players
Fred Biery
He is a federal judge presiding over the criminal proceedings for the Lubbock businessmen.
Michael L. Cox
He is one of the two Lubbock businessmen convicted of financial crimes involving Ferrum Capital.
Joshua L. Allen
He is the second Lubbock businessman convicted alongside Michael L. Cox for their roles in a securities fraud scheme.
The details
Judge Fred Biery issued a written response to the detention request, incorporating literary references and biblical passages to explain why the men should not be released. The defendants were previously convicted in proceedings handled in San Antonio.
Timeline
October 5, 2026: The federal judge officially denied the request for release from detention.
December 10, 2026: Sentencing is scheduled for both defendants.
Legal Context
This case follows the Ferrum Capital securities fraud convictions, which remain a significant financial crime matter in the region. The ruling reflects a strict judicial approach to pre-sentencing detention when defendants cite religious justification for their release.
The continued incarceration of these individuals maintains the current status of the federal case in the community. Residents and observers should note that the legal process will conclude with sentencing proceedings later this year.
The takeaway
The court's decision highlights the limited weight that personal belief systems hold in federal detention hearings when balanced against criminal convictions. It serves as a reminder of the rigorous standards the judicial system applies to those awaiting sentencing for financial fraud.
Further reading
For more background on regional white-collar cases, visit the Financial Crime section.
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Should defendants be granted release from jail while awaiting their final sentencing?
