A federal jury in Texas has convicted two individuals for their roles in a Ponzi scheme that also involved former radio host and financial advisor Brooklynn Willey. Joshua Allen and Michael Cox were each convicted of conspiracy to commit wire fraud, conspiracy to commit money laundering, conspiracy to launder monetary instruments, and securities fraud, charges that could result in prison sentences of up to 70 years for each of them.

The two men were taken into federal custody after the jury returned its verdict. Allen's lawyer didn't immediately respond to a request for comment. A lawyer representing Cox declined to comment. The presiding judge hasn't scheduled a sentencing date.

The co-defendant, Willy, previously pleaded guilty to her role in the fraud.

Allen and Cox worked with Willy to solicit investments in four companies the two men controlled. Willy, the radio host and advisor, owned an advisory practice, Queen B Advisory, which did business as Texas Financial Advisory, and another entity called Chandler Capital Holdings. Her sentencing is scheduled for Dec. 14.

Prosecutors say that Allen, Cox, and Willy repeatedly misled victims about the nature of the investments, many of which were structured as purchases of bad debt, and concealed the hefty commissions they collected. In reality, they used much of the money for personal expenses and to repay earlier investors in a Ponzi-like fashion, according to the Justice Department.

Many of the investments were structured as lending contracts, packaged as four-year notes offering quarterly interest rates of 8% or annual rates of 10%, with the advisors taking commissions of at least 10.75%, the Justice Department said. When investors began redeeming their notes in 2022, the architects of the scam began scrambling to find fresh investors to fund Ponzi-like repayments.

Authorities say the scam cost investors millions of dollars and that some of the hundreds of victims were close friends of Allen and Cox.

"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," says Justin Simmons, U.S. attorney for the Western District of Texas.

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