Ferrum Capital Lawsuit 2021 New!

The illusion of financial stability began to crumble when the commercial lending program was quietly suspended, and investors stopped receiving returns or the return of their principal.

The Ferrum Capital Lawsuit: Unraveling the Multi-Million Dollar Investment Fraud

New York usury laws cap interest rates on loans at 16% for corporations (and 25% for non-bank lenders). The defendant argued Ferrum’s 2.5x multiplier effectively represented an annual interest rate exceeding 150%—making the agreement criminally usurious and thus unenforceable. Ferrum countered that litigation funding is not a "loan" but an "investment" in a legal asset, exempt from usury laws. This became the central legal battleground. ferrum capital lawsuit 2021

Collins now faces ongoing legal efforts from Ferrum's court-appointed receiver to recover funds.

Versus filed the lawsuit on April 9, 2021, seeking a temporary restraining order (TRO) against Ferrum. The complaint painted a picture of a classic “loan-to-own” scheme: The illusion of financial stability began to crumble

If you blinked in 2021, you missed one of the quieter, yet more instructive, legal brawls in the special purpose acquisition company (SPAC) universe. While most eyes were on Elon Musk’s Twitter antics and crypto volatility, a Delaware LLC named Hightower Holding was locked in a bitter arbitration-turned-lawsuit with an investment firm called Ferrum Capital Partners.

Adkins invested nearly $500,000 — about 20 years of his savings. He was promised $615,000 by October 2024. He never received a dime. Ferrum countered that litigation funding is not a

At the center of the controversy are Lubbock-based businessmen and Michael Cox —the co-founders of Ferrum Capital—alongside their San Antonio-based financial advisory affiliate, Brooklynn Chandler Willy . Together, they are accused of orchestrating a scheme that took in tens of millions of dollars from retail investors, many of whom lost their entire life savings. The Origins and Structure of the Investment Setup

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