SAN ANTONIO – Two men from Lubbock, Texas, have been found guilty for their roles in a Ponzi scheme that involved a former financial advisor from San Antonio. Joshua Allen and Michael Cox were convicted in a federal courtroom, marking a significant step in the Justice Department’s efforts to tackle financial fraud.
According to U.S. Attorney Justin R. Simmons, the two men deceived their victims by promising safe investments while hiding the high fees they were charging. “In the midst of this Ponzi scheme, Allen and Cox collected a handsome fee by telling various egregious lies, even using their self-proclaimed faith and reputation in their community to con the investors they victimized,” Simmons stated. This case highlights the commitment of the Department of Justice to prosecute individuals who exploit the trust of ordinary Americans.
Evidence presented during the trial revealed that Allen and Cox jointly owned and operated four investment companies. They collaborated with Brooklynn Chandler Willy, a former financial advisor who also pleaded guilty to charges related to the scheme. Together, they misled investors about the safety of their investments, resulting in significant financial losses for hundreds of victims.
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The trio’s scheme caused victims to lose millions of dollars, as they concealed the truth about their operations. Allen and Cox now face up to 70 years in prison, although their sentencing dates have not yet been set.
Willy, who has already admitted guilt to 10 charges related to the fraud, could face up to 20 years in prison for her involvement in wire fraud and conspiracy charges. She is set to be sentenced on December 14, and she may also face additional penalties for other charges, including aggravated identity theft.
This case serves as a reminder of the importance of vigilance when it comes to investments and the need for individuals to be aware of potential scams that exploit trust and faith.
