Brooklynn Chandler Willy, CEO and president of San Antonio-based Texas Financial Advisory, was arrested Tuesday at her Stone Oak offices by IRS agents. She was indicted last week by a federal grand jury.
YouTubeEmbattled San Antonio investment adviser and financial radio show host Brooklynn Chandler Willy remained behind bars Wednesday after being arrested by IRS agents at her Stone Oak office.
The arrest Tuesday came six days after a federal grand jury indicted her on three charges including obstruction of justice and aggravated identity theft. It’s the latest in a string of legal and regulatory trouble she’s faced in recent years.
Willy, restrained in shackles, made an initial court appearance Tuesday afternoon. U.S. Magistrate Judge Elizabeth “Betsy” Chestney set a detention hearing for Friday to determine whether Willy, 45, can be released on bond.
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Chestney said prosecutors asked that she remain in custody because she poses a “substantial risk for obstructing justice.”
San Antonio attorney Roy Barrera Jr., who represents Willy, declined to address the charges against her other than to say they would be dealt with in court at the appropriate time.
“This is obviously an extreme shock to her (and) her family and we’re going to do everything we can to represent her to the best of our ability,” he said after the hearing. “We’re hoping for the best.”
READ MORE: Fraud claims mount against San Antonio investment adviser Brooklynn Willy, her firm and others
According to the indictment, which was unsealed late Tuesday afternoon, the FBI and IRS began a criminal investigation in November 2023 into an investor fraud scheme involving Willy. A federal grand jury has issued subpoenas as part of the investigation, which is ongoing. The investigation started less than 10 days after the San Antonio Express-News reported on multiple lawsuits against her.
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Willy, owner of Queen B Advisors LLC, which does business as Texas Financial Advisory, is charged with impeding the federal grand jury proceeding by providing a false revolving line of credit agreement in response to a subpoena.
She told federal agents that a revolving line of agreement to her for $500,000 had been signed by two individuals identified as “Victim 1” and “Victim 2”, the indictment says. The two never entered into the agreement, the charging document says. Willy is charged with forging their signatures on the credit agreement and promissory note.
If convicted, she could face up to 20 years in prison on the obstruction charge. Making a false statement carries a prison sentence of up to five years, while identity theft is a minimum of two years in prison — to run consecutively with any other sentence. Each charge also carries a maximum penalty of $250,000.
Willy already is facing at least three civil lawsuits by former clients who accuse her of various wrongdoing. In one of the suits, 71 plaintiffs have alleged she violated state securities laws, breached her fiduciary duties and committed fraud.
A lawyer representing her in that ligation previously said the allegations were “unfair” and would be fought.
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Willy appears on the radio Saturday evenings and Sunday mornings on WOAI-AM and Sunday afternoons on KTSA-AM and KTSA-FM offering financial advice to listeners.
Four years ago, she landed in the crosshairs of the Texas State Securities Board for engaging in the sale of “alternative investments” without being registered as a securities dealer or an agent of a dealer. That activity cost her her job.
As part of the state’s disciplinary order, she agreed to a one-year suspension of her license as an investment adviser and to pay back almost $2.8 million in commissions she received from the sale of the alternative investments.
She forged many clients’ signatures on a document purportedly “waiving” their right to receive a commission refund as ordered by the state, according to the lawsuit filed by 71 plaintiffs.
She also is is accused in the suit of pitching “risky, unregistered investment contracts” by various businesses, including Lubbock-based Ferrum Capital LLC. Some of the investors’ money was used to fund loans to Austin debt collection agency Collins Asset Group LLC to buy distressed accounts receivable, also known as bad debt, the suit says.
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Willy assured clients their investments were “safe” and profits “guaranteed,” the suit says. In reality, Ferrum was a “Ponzi scheme” and it’s unlikely investors will get their money back.
“There are $20 million worth of Willy customers who very much want to know why they sold them Ferrum notes,” said Shari Pulman, an attorney who represents the 71 plaintiffs.
