The refers to a series of legal actions that began surfacing around 2021, eventually exposing a massive $67 million to $100 million Ponzi scheme orchestrated by Lubbock and San Antonio-based financial advisors . The scheme primarily targeted elderly retirees through promissory notes issued by entities known as Ferrum Capital LLC, Ferrum II, Ferrum III, and Ferrum IV. Background: The "Lending Program" Strategy
: Although redemptions were supposed to occur, the entities eventually defaulted in 2023 when the inflow of new investor money could no longer cover the high commissions (often over 10%) and payments to earlier investors. Legal Fallout and Indictments ferrum capital lawsuit 2021
into a Ferrum company but used the funds for personal expenses and other investor payments The Scheme's Nature The refers to a series of legal actions
, founded in 2017 by Joshua Allen and Michael Cox, is currently at the center of a massive legal and criminal controversy involving an alleged $100 million Ponzi scheme . The 2021 Lawsuit & Indictment Overview Legal Fallout and Indictments into a Ferrum company
. The "2021" element refers to a specific surge in fraudulent activity that year, which later became a focal point of federal indictments. Core Legal Issues & Indictments The 2021 Investments
However, the practical result was clear: By early 2022, Versus had ceased operations, its assets were liquidated or transferred, and its founders walked away with nothing. The company that once ran major fighting game tournaments was no more.
: Promoters failed to disclose that they were taking high commissions—often 8% —and that the investment notes were not registered with state or federal regulators. Key Figures & Criminal Charges