Ferrum Capital Lawsuit 2021
In a significant development, a bankruptcy judge has ruled that the promissory notes sold by Ferrum Capital and its entities are securities that were required to be registered, and that neither Cox nor Allen nor Willy nor their companies held the necessary permit for sale. As a result, Cox cannot discharge his debt against the roughly 80 plaintiffs suing him for more than $21 million.
In the short term, the lawsuit may lead to:
For Ferrum, it was a hedged betโprofit if the deal works, a huge fee if it doesnโt. For Hightower, it was a necessary evil to secure the cash. ferrum capital lawsuit 2021
While Ferrum faced various disputes over the years, the 2021 era was marked by aggressive litigation from investors who claimed their capital had been misappropriated. The core allegations included:
The scheme was closely linked with financial advisor of San Antonio, who operated through Chandler Capital Holdings and helped solicit funds for the Ferrum entities. Key Players in the Ferrum Capital Lawsuits Testing Trust In a significant development, a bankruptcy judge has
via the SEC or FINRA.
In the high-stakes world of commercial finance and litigation funding, disputes often arise that never make it to mainstream headlines. However, for those involved in the fintech, lending, and legal funding sectors, the became a landmark case study in aggressive contract enforcement, allegations of bad faith, and the complexities of third-party litigation financing. For Hightower, it was a necessary evil to secure the cash
Ferrum Capital LLC (alongside its subsequent iterations Ferrum II, III, and IV) was founded in 2017 by Joshua Allen and Michael Cox. The firm pitched an alternative investment strategy focused on "distressed debt".
Following the filings in 2021, the situation for Ferrum Capital deteriorated rapidly. The legal battles exposed the risks of "unregulated" private lending. Unlike banks, which are subject to strict federal oversight and capital reserve requirements, private lenders often operate with far less transparency.
Legal filings asserted that the promissory notes sold by Ferrum were unregistered securities sold without the necessary permits.
The lawsuit claims that Ferrum Capital:
