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Former Texas Advisor Pleads Guilty in Multi-Million Dollar Ponzi Scheme

Posted on May 1st, 2026 at 3:18 PM
Former Texas Advisor Pleads Guilty in Multi-Million Dollar Ponzi Scheme

From the desk of Jim Eccleston at Eccleston Law

A former financial advisor and media personality in San Antonio has admitted to defrauding clients in a large-scale Ponzi scheme involving hundreds of investors and millions of dollars, according to reporting by Financial Advisor News.

Brooklynn Chandler Willy pleaded guilty to 10 criminal counts, including six counts of wire fraud, along with charges involving identity theft and money laundering.

Willy owned Queen B Advisors, which operated as Texas Financial Advisor, and previously maintained a public presence through radio, podcasting, and television appearances focused on financial topics. Her firm offered asset management and financial planning services.

Federal prosecutors alleged that Willy misappropriated client funds intended for investment. In one instance, a client couple entrusted $500,000 for investment in a Lubbock-based company through promissory notes. Prosecutors stated that Willy never invested those funds as represented. Instead, she used the money for personal expenses, payments to other investors, and transfers to affiliated business entities she controlled, according to Financial Advisor News.

Authorities later expanded the case to include co-defendants Joshua Allen and Michael Cox, who operated multiple investment entities, including Ferrum Capital. According to the U.S. Attorney's Office for the Western District of Texas, the defendants solicited investors by misrepresenting the nature and security of the investments while concealing high commissions. Prosecutors alleged that the defendants diverted investor funds to pay earlier investors and to enrich themselves, a hallmark of a Ponzi scheme.

According to Financial Advisor News, court filings further allege that the defendants assured investors that their funds were safe, secure, and collateralized. Instead, prosecutors asserted that the defendants used the majority of the funds for personal benefit. The indictment also includes allegations that Allen made extreme assurances regarding the safety of the investments to at least one investor.

The cases against Allen and Cox remain pending, and both have pleaded not guilty.

Financial Advisor News also reports that Willy's legal troubles predate the criminal case. The Texas State Securities Board suspended her license in 2020 for selling unsuitable alternative investments and ordered her to repay more than $2.75 million in commissions. Her employment also was terminated by from J.W. Cole Advisors in 2019 for engaging in unapproved securities transactions.

Federal authorities initially charged Willy in 2024 with additional offenses, including obstruction, making false statements, and identity theft. Prosecutors alleged that she submitted falsified financial documents in response to a federal grand jury subpoena.

Willy now awaits sentencing, which is scheduled for September. According to Financial Advisor News, she faces a potential sentence of up to 20 years in prison.

Eccleston Law LLC represents investors and financial advisors nationwide in securities, employment, transition, regulatory, and disciplinary matters.

Tags: eccleston, eccleston law, ponzi scheme, securities fraud, investment fraud, financial advisor misconduct, investor protection

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