Ferrum Capital Fraud Defendants Sought Pre-Sentencing Release
Attorneys and associates have requested bond for Joshua Allen and Michael Cox ahead of their December sentencing.
Updated on Sept. 24, 2026 in Financial Crime
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Joshua Allen and Michael Cox, convicted of four felony counts for running an investment fraud scheme at Ferrum Capital, have filed motions requesting release on bond. Judge Fred Biery ordered the pair into custody following their August conviction.
Why it matters
The defendants are seeking temporary freedom to address family needs and prepare for their upcoming sentencing hearings. Allen, who has surrendered his passport, cited his role as a primary caregiver for his children and his wife's recent cancer diagnosis.
Joshua Allen and Michael Cox were convicted of four felony counts, while co-defendant Brooklynn Chandler Willy faces up to 20 years in prison for each of eight fraud counts. Sentencing is pending for all defendants in the federal court in San Antonio.
The players
Joshua Allen
He is a defendant convicted of operating an investment fraud scheme through Ferrum Capital.
Michael Cox
He is a co-defendant convicted of four felony counts in the Ferrum Capital fraud case.
Brooklynn Chandler Willy
She is a co-defendant who pleaded guilty to 10 federal felony counts related to the investment scheme.
Fred Biery
He is the federal judge presiding over the case who ordered the defendants into custody.
The details
The investment fraud scheme involved soliciting funds from investors and using those assets to pay earlier participants and the defendants themselves. While Allen and Cox await their Dec. 10 sentencing, Willy, who pleaded guilty to 10 federal counts in March 2026, is scheduled for sentencing on Dec. 14, 2026.
Timeline
March 2026: Brooklynn Chandler Willy pleaded guilty to 10 counts.
August 2026: Joshua Allen and Michael Cox were convicted on all counts.
December 10, 2026: Allen and Cox are scheduled for sentencing.
December 14, 2026: Willy is set for sentencing.
Legal Context
This case follows established federal sentencing guidelines for financial fraud, including the two-year mandatory minimum for aggravated identity theft. The court's decision to remand defendants into custody reflects a broader trend of stricter pretrial detention for major fraud convictions.
The proceedings in San Antonio carry weight for investors seeking clarity on the resolution of the Ferrum Capital fraud. Residents and former investors can expect continued court activity as the sentencing dates in December approach.
The takeaway
Defendants facing significant prison time often petition for bond release citing personal family hardships and caregiver responsibilities. Courts must balance these individual circumstances against the severity of the financial crimes and flight risk following a conviction.
Further reading
Learn more about the local legal proceedings at Financial Crime.
Source note: This article includes information reported by Kcbd.
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