Tr?id=566623520170033&ev=PageView&noscript=1

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

Return to Archive

TESTIMONIALS

Previous
Next
Quotes Bigger

I want to extend a tremendous thank you for your dedication, professionalism, hard work and patient demeanor through this challenging time. It was enjoyable interacting with everyone on your team, this certainly helped while dealing with the situation and working towards resolution.

Dan M.

LATEST NEWS AND ARTICLES

1779383898 Law
May 21, 2026
Edward Jones Faces Federal Privacy Lawsuits Over Alleged Data Sharing With Tech Companies

Edward Jones is facing multiple lawsuits alleging that the firm improperly shared clients' personal and financial information with third-party technology companies for targeted advertising purposes, according to reporting by Financial Planning.

1779287606 Law
May 20, 2026
FINRA Sanctions Ameriprise for Supervisory Failures in Variable Annuity Exchanges

The Financial Industry Regulatory Authority (FINRA) has fined Ameriprise Financial Services and ordered restitution to resolve allegations that the firm failed to adequately supervise certain variable annuity exchange recommendations.

1779216500 Law
May 19, 2026
SEC Fines Ally Invest Advisors Over Undisclosed Robo-Advisor Conflict

The Securities and Exchange Commission (SEC) imposed a $500,000 penalty on Ally Invest Advisors after finding that the firm failed to disclose a material conflict of interest tied to its Cash-Enhanced robo-advisor accounts.