A court-appointed receiver argued that Allen could transfer valuable business interests after a separate Lubbock receivership ended. A Bexar County judge later granted a temporary injunction.

SAN ANTONIO — A judge has temporarily prohibited Lubbock businessman Joshua Allen and two companies associated with him from selling, transferring or otherwise disposing of numerous business interests while a court-appointed receiver pursues money for former Ferrum Capital investors.

Receiver John Patrick Lowe initially sought emergency intervention in late May, arguing that assets connected to Allen could be moved beyond the reach of people attempting to recover investment losses.

The request targeted Allen, Allen Financial Agency and Landzacha Holdings, a Lubbock-based company owned by Allen. Judge Norma Gonzales of Bexar County’s 131st Judicial District Court first issued a temporary restraining order and scheduled a hearing for June 12, according to court-record reporting about the receiver’s request.

Following that hearing, Gonzales granted a broader temporary injunction. The order prevents Allen and the two companies from selling, transferring, encumbering, hiding or impairing the covered assets while the civil case proceeds.

The ruling is intended to preserve property, not distribute it. It does not transfer ownership of Allen’s companies to Lowe or constitute a final determination that the receiver is entitled to all their value.

Receiver alleges millions in damages

Lowe has controlled Ferrum Capital and Ferrum IV under a receivership created in a San Antonio civil lawsuit. His responsibility is to locate, preserve and potentially recover assets for the receivership estate and people who invested through the Ferrum entities.

In his request for an injunction, Lowe alleged that Allen caused at least $11 million in damage to the Ferrum companies and at least $50 million in losses to plaintiffs in the litigation.

The receiver also cited work by a forensic accountant who, according to the filing, concluded that Ferrum operated as a Ponzi scheme and that Allen received millions of dollars in fraudulent transfers.

Those statements were allegations presented by the receiver in support of his request. They have not yet resulted in a final civil judgment against Allen on all the asserted claims.

The filing also said Allen invoked his Fifth Amendment right against self-incrimination more than 490 times during a deposition addressing Ferrum, the handling of investor money and his role in the companies. Exercising the Fifth Amendment is a constitutional right and is not, by itself, a criminal conviction or admission of liability.

End of separate receivership created urgency

Lowe argued that immediate protection became necessary after a separate receivership in Lubbock ended May 8.

That proceeding arose from a lawsuit involving former investors in an Amarillo Walk-On’s Sports Bistreaux venture. A different receiver, Lubbock attorney Max Tarbox, had taken control of Allen’s nonexempt assets to collect a judgment entered in that case.

Tarbox ultimately negotiated an $835,000 sale of Allen’s interests in nine companies. The money covered the Walk-On’s judgment, interest, attorney fees and receivership expenses, allowing the Lubbock collection proceeding to close.

Once that receivership ended, Lowe argued, business interests that had previously been restrained could again be transferred or depleted. His filing warned that without another court order, Allen could dispose of the assets and leave Ferrum investors with fewer potential sources of recovery.

Lowe said he was not immediately asking the court to force a sale of the companies. Instead, he sought to maintain their current status while he investigated their ownership, financial condition and possible value to the Ferrum estate.

Court finds risk of irreparable injury

In the temporary-injunction order, Gonzales found that Allen, Allen Financial Agency and Landzacha Holdings were “probably insolvent” and likely unable to satisfy potential damages without the value held in other businesses.

The judge also found that Lowe had shown a probable right to recover relief and that the receivership estate faced imminent and irreparable injury without an injunction.

Those are preliminary findings used to decide whether assets should be protected while litigation continues. They are not the same as a final verdict following a full trial.

The injunction covers more than 35 businesses and associated real estate interests that the court determined Allen owns or controls. Among the named entities are AAC Holdings, Hub City Land, RaiderLand Property Management, 7 Spur Ranch, National ScriptNet, Trading Up Lubbock, Monarch Executive Protection Services, Hub City Cantina and several restaurant-related companies.

Gonzales’ ruling did not place the businesses directly into Lowe’s possession. The receiver could, however, later ask the court for authority to take control of or sell specific interests if he demonstrates that doing so is legally justified and necessary to compensate victims.

Federal criminal case remains separate

Allen and Ferrum co-founder Michael Cox separately face federal criminal charges. A 2025 federal indictment announced by the Justice Department accuses them of conspiracy to commit wire fraud, two money-laundering conspiracies and securities fraud.

Prosecutors allege that Allen, Cox and their associates misrepresented the safety and nature of Ferrum investments, concealed commissions and used money from later investors to pay earlier participants. The government says hundreds of people collectively lost millions of dollars.

Allen and Cox have pleaded not guilty and are presumed innocent unless proven guilty beyond a reasonable doubt. Their federal jury trial was scheduled to begin Aug. 10 in San Antonio.

San Antonio financial adviser Brooklynn Chandler Willy, who worked with Allen and Cox, pleaded guilty to 10 federal counts in March. The Justice Department said her convictions included wire fraud, conspiracy, money laundering and aggravated identity theft.

Former Ferrum investors and other potential creditors have until Sept. 3 to submit claims to Lowe. Information about the process and separate forms for investors and other creditors is available through the Ferrum receivership claim notice.