Willy is scheduled for sentencing in September, while Lubbock businessmen Joshua Allen and Michael Cox have pleaded not guilty and are preparing for trial.

SAN ANTONIO — Former financial adviser Brooklynn Chandler Willy pleaded guilty to 10 federal counts arising from investment-fraud allegations connected in part to Lubbock-based Ferrum Capital and its affiliated companies.

Willy, 46, entered the pleas March 19 in federal court in San Antonio. Her admitted offenses include:

• Six counts of wire fraud
• One count of conspiracy to commit wire fraud
• One count of conspiracy to commit money laundering
• One count of conducting a monetary transaction involving criminally derived property
• One count of aggravated identity theft

The U.S. Attorney’s Office for the Western District of Texas said Willy owned Queen B Advisors LLC, which did business as Texas Financial Advisory, as well as Chandler Capital Holdings. Her companies offered financial-planning and asset-management services.

Willy’s sentencing is scheduled for Sept. 28, according to federal court records. U.S. District Judge Fred Biery will determine her punishment after reviewing the federal sentencing guidelines, the plea agreement, victim losses and other statutory factors.

Plea covers multiple investment transactions

Federal prosecutors said Willy recommended that a married couple invest with Ferrum Capital in March 2018. In May 2021, she advised the couple to place another $500,000 into a Ferrum-related investment, using Chandler Capital Holdings to execute and deliver the contracts.

Instead of investing that money as represented, Willy admitted using it for personal credit-card payments, payments to previous investors and payments to another business she controlled.

In another transaction, Willy persuaded a different couple to invest approximately $2 million in an associate’s company. She represented that the money would be used to purchase distressed debt and make other legitimate investments. Prosecutors said the money instead benefited Willy, her associate and other investors.

Willy also admitted obtaining investments of $75,000 and $600,000 from two additional people under false pretenses. During the subsequent federal investigation, she forged victims’ signatures and supplied the falsified documents to investigators, according to the Justice Department.

The admitted conduct involves more than Ferrum Capital. However, court documents also describe Willy’s role in recommending investments in companies owned and controlled by Allen and Cox.

Possible prison terms

Willy faces a statutory maximum of 20 years in prison on each of the six wire-fraud counts, the wire-fraud conspiracy count and the money-laundering conspiracy count.

The criminally derived property count carries a maximum sentence of 10 years. Aggravated identity theft carries a mandatory two-year term that generally must be served consecutively to any other prison sentence.

Those maximum penalties should not be added together as a prediction of Willy’s eventual sentence. Some sentences may run concurrently, and federal judges calculate punishment using advisory guidelines and case-specific factors. Restitution and asset forfeiture may also be addressed during sentencing.

Earlier reporting from Lubbock Lights said victims filled the courtroom during Willy’s plea hearing. Willy acknowledged taking investors’ money and apologized after the judge directed her to address the people affected by her conduct.

Allen and Cox have pleaded not guilty

Joshua Allen and Michael Cox, who jointly owned and controlled Ferrum Capital, Ferrum II, Ferrum III and Ferrum IV, remain charged in a separate federal indictment.

The July 2025 indictment charges Allen and Cox with conspiracy to commit wire fraud, conspiracy to commit money laundering, conspiracy to launder monetary instruments and securities fraud.

Both men have pleaded not guilty. The charges against them remain allegations, and they are presumed innocent unless prosecutors prove their guilt beyond a reasonable doubt.

Their jury trial is scheduled to begin Aug. 10 in San Antonio and could continue for approximately three weeks. Allen sought a delay, arguing that restrictions involving some of his business assets could affect his ability to pay his attorneys. Judge Biery rejected the request, leaving the August date in place, according to a July 2 court update.

Attorneys were still disputing what financial records, charts and other evidence the jury should be permitted to consider as of July 21. Recent court filings indicate prosecutors intend to use summary exhibits to explain numerous financial transactions, while defense lawyers have challenged portions of the government’s proposed evidence.

Federal prosecutors said in June that they were not engaged in plea negotiations with Allen or Cox and that both men intended to exercise their right to a trial.

Allegations involving Ferrum

The indictment alleges hundreds of people invested approximately $67 million in Ferrum Capital. Investors were offered notes paying 8% quarterly interest or 10% annual interest and were told their investments were safe, secured and supported by legitimate business activity.

Prosecutors allege that the defendants concealed commissions, overstated the quality of the collateral and used some new investor funds to pay earlier investors. Allen and Cox dispute the criminal allegations.

The scope of the federal investigation extends beyond money placed directly into Ferrum Capital. An FBI portal for potential victims says more than 400 people invested over $100 million through the defendants and associated investment operations.

The FBI and IRS Criminal Investigation are handling the investigation. People who believe they were affected may submit information through the FBI’s victim-identification portal. Willy’s guilty plea resolves her criminal liability under the plea agreement, but it does not establish the guilt of Allen or Cox.