Collins Asset Group, meanwhile, filed for bankruptcy in Delaware, prompting concerns from victims' attorneys that the proceedings would move to Delaware — a move they described as "right out of the Ponzi scheme playbook". In a favorable ruling for victims, however, Delaware bankruptcy Judge Laurie Selber Silverstein transferred the Collins Asset Group bankruptcy to Texas.
In 2021, the Texas State Securities Board (TSSB) was actively investigating Willy. The TSSB's records show that in 2019, Willy was terminated from J.W. Cole for "violation of firm policies regarding participation in unapproved private securities transactions". Later, when Willy tried to register with the Securities Commissioner as an investment adviser representative, the TSSB claimed that she failed to disclose her involvement in selling alternative investments and was never properly registered as a dealer. These findings were part of a longer history of regulatory concern that would later be central to the allegations against her.
Ed Price, a seasoned Lubbock attorney now working to help victims recover their money, described the situation as leaving him "disgusted" and pushing up his retirement plans. "I don't understand how you can do that to somebody else, particularly elderly folks — take their life investment and reduce several of them to poverty — make one guy homeless," Price said.
The Ferrum Capital lawsuit serves as a reminder of the importance of regulatory compliance, transparency, and best practices in the financial services industry. As the lawsuit continues to unfold, it is likely to have significant implications for Ferrum Capital, its clients, and the broader financial industry. This write-up will continue to monitor developments in the case and provide updates as necessary. ferrum capital lawsuit 2021
Enter Ferrum Capital. According to the complaint filed in June 2021, Ferrum agreed to provide a massive $35 million PIPE investment. In exchange, Hightower made a critical concession: they agreed to pay Ferrum a if the merger failed to close by a specific drop-dead date.
These delays were catastrophic for a lender like Ferrum. Their business model often relied on quick exits or refinancing. When portfolio companies like Porter stalled failed to execute their public offerings on time, Ferrum’s capital was tied up, leaving them unable to meet their own obligations to creditors like Omni Partners.
Investors alleged that they had entrusted large sums of money to Ferrum Capital to fund specific loans or to act as capital for the company’s lending operations. The lawsuit claimed that instead of using these funds for the intended real estate deals, Ferrum used the money to pay off earlier investors or to cover internal overhead expenses—a classic hallmark of a Ponzi scheme. Collins Asset Group, meanwhile, filed for bankruptcy in
The lawsuit against Ferrum Capital was filed in 2021 by a group of investors who alleged that the company had engaged in a series of deceptive and negligent practices. The plaintiffs claimed that Ferrum Capital had made false and misleading statements about the performance of several investment funds that the company managed, and that these statements had induced the plaintiffs to invest in the funds.
The initial civil filings, bankruptcy maneuvers, and subsequent federal indictments show that the investments funneled into the firm in 2021 were foundational to both the continuation and the ultimate collapse of the financial operation. The Anatomy of the Ferrum Capital Scheme
In 2021, the scheme significantly expanded as financial advisors, most notably , continued to solicit large investments—sometimes as high as $500,000 per couple—for Ferrum entities despite prior regulatory scrutiny . By mid-2023, the operation began to collapse, leading to mass defaults and a flurry of lawsuits . 2. Key Individuals & Entities The TSSB's records show that in 2019, Willy
: In April 2025, a bankruptcy judge explicitly defined Ferrum as a Ponzi scheme , where new investor money was used to pay earlier investors rather than being legitimately invested.
The operators allegedly failed to disclose high commissions associated with the investments.
Investors and analysts noted that the Ferrum situation underscored a specific risk in the "Regulation D" (Reg D) private placement market: information asymmetry. While firms are required to file forms with the SEC when raising capital, the details of loan defaults and internal disputes often remain hidden from smaller investors until the situation has deteriorated significantly.