After Joshua Allen was indicted by federal prosecutors in July of last year, he told a friend over coffee he was “a victim” in the collapse of Ferrum Capital.
That friend – Jay Adkins, who lost nearly $473,000 when Ferrum fell apart – did not let Allen go unchallenged.
I said, ‘Josh, I don’t believe you because I’ve talked to the FBI…’
Jay Adkins
Adkins, a retired Lubbock dentist, was the final witness in a civil hearing in San Antonio this week as Ferrum Capital victims try and get some of their money back.
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Afterward, outside the Bexar County Courthouse on Tuesday, Adkins spoke with Lubbock Report.
When Ferrum’s cofounders, Allen and Michael Cox were charged with securities fraud and conspiracy last year, Adkins reached out to Allen, he said.
“After the indictments I texted him and I said, ‘You want to meet for coffee?’ And he said, ‘Yeah.’ So, we met at Starbucks, and we talked. And he said, ‘I’m a victim,’” he said.
“I said, ‘Josh, I don’t believe you because I’ve talked to the FBI, and the FBI told me you took a 10 percent commission off the top of my money. And he said, ‘No, not 10 percent. It was actually – I got 9.5 percent.’ And I said, ‘Josh, that’s illegal. That’s so unethical.’ And he said – he just shook his head – ‘Yeah, yeah it was,’” Adkins said.
Earlier in court Tuesday, Adkins told the same story he told in August’s criminal trial against Allen and Cox, which was held a few blocks down the street from the Bexar County Courthouse.
In August’s criminal trial, Allen’s defense team tried to paint him as a victim of Collins Asset Group. It didn’t work. The federal prosecutor pointed out Collins was involved with Ferrum Capital. But Collins ws not involved with Ferrum IV. Allen and Cox are facing long prison terms. Two other people took plea deals related to Ferrum. You can see our ongoing coverage of Ferrum here.
Allen didn’t know Adkins had recorded a conversation with him a few years earlier that would be evidence in Allen’s conviction.
In both San Antonio courtroom appearances, Adkins played the recording he made of Allen before deciding to invest. He wanted to make sure it was safe because he intended to use the money to help his daughter with a medical issue.
Allen assured him the investment was safe, telling Adkins, “For this not to work Jesus would have to come back,” Adkins said he was told and the court heard it on the recording.
Adkins told the court he trusted Allen because of his business relationship with his dad, Duane. The elder Allen prepared his taxes for more than 40 years.
(At the end of the trial Tuesday, Randall Pulman, the San Antonio attorney representing more than 70 Ferrum victims, pointed out to the court that Duane Allen was not involved in the scheme.)
Sometime in 2020, Adkins and Allen discussed the investment.
“I mentioned annuities. He said, ‘Those are coming due pretty soon. I’ve got something that will make more money than the annuities,’” Adkins said in court.
“When I read the risk part of the prospectus, I was not comfortable,” Adkins testified.
“In the recording, I asked him about the risk. I tell him my daughter … has lupus. … He said, ‘Oh yes. This is the safest thing you can do,” Adkins testified, adding Allen told him he invested in it as did his mother-in-law.
