Ferrum Capital Lawsuit 2021 Fix Jun 2026

Ferrum wasn't a bank; it was a private credit fund. The case highlighted how alternative lenders can use legal engineering (breakup fees) to generate yield in a zero-close scenario. Regulators have since flagged this as a potential systemic risk in private credit.

The represents one of the most prominent financial fraud investigations in recent Texas history, unraveling a multi-million-dollar Ponzi scheme that stripped hundreds of investors of their life savings. ferrum capital lawsuit 2021