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.
, a San Antonio affiliate, advised clients to invest with a Ferrum company. Instead of being invested as promised, these funds were allegedly diverted for personal use and to pay earlier investors. ferrum capital lawsuit 2021
While major legal actions and criminal indictments came to light later, lawsuits and complaints regarding the operation of Ferrum Capital began surfacing around 2021, particularly as investors began to question the safety of their capital. Key allegations emerging from the lawsuits include: Collins Asset Group, meanwhile, filed for bankruptcy in
Hightower’s counter-argument? The merger failed due to market conditions, not their actions. They claimed the breakup fee was unenforceable because Ferrum had failed to actually secure the $35 million in committed capital. In other words: "You didn't have the money ready, so you don't get the fee." Instead of being invested as promised, these funds
The core of the legal challenges against Ferrum Capital involves three primary individuals: Joshua Allen Michael Cox