Josh Wander, the 44-year-old co-founder of Miami-based investment firm 777 Partners, was indicted Thursday on federal charges of conspiracy, wire fraud, and securities fraud, according to an FBI press release.
Prosecutors in the U.S. District Court for the Southern District of New York allege Wander and his team defrauded lenders and investors of nearly $500 million. This was carried out through a sophisticated scheme of fabricated financials, doctored records, and double-pledged assets.
Once hailed as a visionary in global sports and aviation, Wander’s empire spanning seven soccer clubs across seven countries and two budget airlines now faces ruin.
October Indictments
The 22-count indictment, unsealed October 16, outlines a pattern of deception from 2020 to 2024. Wander allegedly inflated 777’s asset values, created fake documents showing hundreds of millions in non-existent holdings.
He is alleged to have misled lenders like Leadenhall Capital Partners into extending loans at premium rates.
“This was a house of cards built on lies,” said U.S. Attorney Damian Williams. Co-defendant Damien Alfalla, 777’s CFO, faces similar charges, while the SEC’s parallel civil suit targets Wander, co-founder Steven Pasko, and affiliated entities for $237 million in securities violations.
Neither Wander nor 777 has commented publicly. 777 Partners burst onto the scene in 2015, evolving from structured settlements into a $2 billion powerhouse.
Its crown jewel was a blitz of sports acquisitions: Genoa (Italy), Standard Liège (Belgium), Hertha Berlin (Germany), Sevilla (Spain), and others.
The firm’s 2023 exclusivity deal to buy English Premier League club Everton for £500 million electrified fans, until it collapsed in June 2024 amid funding shortfalls.
Everton supporters, scarred by the saga, reacted on social media: “Vindicated! Wander’s fraud explains our nightmare,” posted one account.
But the charges’ true shockwaves extend beyond stadiums to the skies. 777’s aviation bets—undisclosed in the indictment but crippled by the same fraudulent cash flows—triggered one airline’s total collapse and another’s desperate fight for survival.
Bonza Airlines: A Budget Carrier Grounded
Launched in January 2023, Australia’s Bonza Airlines embodied 777’s bold vision: a low-cost carrier serving underserved routes with a fleet of 13 Boeing 737 MAX 8s.
Fully owned and funded by 777, Bonza promised affordable travel to 27 domestic destinations, carrying 1.5 million passengers in its first year.
“We were revolutionizing Aussie aviation,” said former CEO Tim Jordan. That revolution ended April 30, 2024. Bonza abruptly suspended flights, stranding 60,000 passengers and leaving 400 staff jobless.
Lessors, spearheaded by AIP Capital, repossessed every plane over $100 million in unpaid leases—directly tied to 777’s frozen funds.
Administrators cited 777’s “cash flow insolvency,” echoing Leadenhall’s May 2024 lawsuit branding the firm a “$600 million Ponzi scheme” that “robbed Peter to pay Paul.”
U.S. probes now eye potential money laundering, alleging sports revenues were diverted to prop up Bonza.
Competitors like Qantas and Virgin Australia stepped in with free re-bookings, but Bonza remained in limbo. Its failure hollowed out Australia’s budget sector, hiking fares by 20% on key routes.
Flair Airlines: Maintaining Airspeed
Across the Pacific, Canada’s Flair Airlines teeters on the brink. Since 2018, 777 held a 25% stake and lent aggressively, guaranteeing leases at 18% interest—allegedly overcharging for planes bought at $42 million and leased at $52 million.
In March 2023, lessors seized four 737s over $30 million in defaults, stranding spring-break travelers. Flair then owed CAD $67 million in import duties, prompting a government seizure order.
Post-Bonza, 777’s stake diluted below 10% in May 2024 after a bailout lender took control. Wander and Pasko resigned from the board, but lawsuits pile up: 17 total claims exceed $200 million, including $28 million from Flair lessors.
A December 2024 Utah ruling halted 777 backer A-Capital’s operations, slamming shut Flair’s credit lifeline. Yet, Flair flew its busiest summer ever, serving 4 million passengers.
It’s now chasing $150 million in restructuring debt from new lessors like SMBC Aviation Capital, while regulators scrutinize foreign ownership limits.
“Flair’s surviving by a thread,” said aviation analyst Henry Harteveldt. “777’s fraud starved it of sustainable capital.”
Conclusion
Wander’s charges cap a saga of hubris. Total litigation against 777 surpasses $1 billion, with creditors circling its insolvent husk. Sports deals have unraveled: Sevilla fights eviction, Hertha battles ownership woes, while aviation ambitions (134 Boeing orders) vaporized.
The scandal has chilled private equity in both sectors. Investors now demand transparency, and regulators eye “Ponzi-like” models.
For Everton fans, it’s closure on a 15-month ordeal. For Bonza’s 60,000 stranded souls and Flair’s 1,200 workers, it’s devastation. Wander, out on $5 million bail, faces a significant prison term if convicted.
