Joshua Wander, co-founder of Miami-based investment firm 777 Partners, which backed the now-bankrupt Australian start-up Bonza, has been charged with wire and securities fraud in what federal prosecutors describe as a USD500 million scheme to deceive lenders and investors through falsified financial statements and double-pledged assets.

Wander, 44, surrendered to federal agents and appeared in the US District Court for the Southern District of New York in Manhattan on October 16, according to a statement issued by the Federal Bureau of Investigation (FBI) New York Press Office. He faces multiple counts of wire and securities fraud, each carrying potential prison terms of up to 20 years.

The firm’s former chief financial officer, Damien Alfalla, pleaded guilty last week and is cooperating with investigators.

Prosecutors allege Wander and others at 777 Partners misled lenders by pledging assets the firm did not own, falsifying bank records, and diverting restricted funds to bankroll risky ventures, including with sports teams and airlines.

777 Partners initially financed and supplied B737-8 MAX aircraft to Bonza, which went out of business in April 2024 after just 14 months. Formerly a 25% shareholder in Canada’s Flair Airlines (F8, Kelowna), 777 Partners reduced its stake after Bonza's collapse, aircraft seizures tied to the 777's airline investments, and regulatory scrutiny over foreign ownership limits in Canada’s airline sector.

"Wander used his investment firm to cheat private lenders and investors out of hundreds of millions of dollars," US Attorney Jay Clayton said in the statement, calling the conduct "a threat to the integrity" of the US financial system.

The alleged fraud, which dates back to 2018, left 777 Partners owing hundreds of millions when a London court declared it bankrupt in 2024. "Beginning in 2018, Wander began investing capital from the structured settlement business into new sectors with less certain cash-flow profiles, including streaming platforms, airlines, and professional sports teams such as Sevilla FC and Genoa CFC," the indictment states.

"Despite warnings from employees, including Alfalla, and contrary to the terms of the credit facilities, Wander directed that restricted funds from 777 Partners’ lenders be used to cover the firm’s acquisitions and expenses. Wander's spending caused 777 Partners to face significant cash and collateral shortfalls. Wander sought to conceal those shortfalls and maintain access to funds by pledging more than USD350 million in assets as collateral to certain lenders, knowing that 777 Partners either did not own the collateral or had already pledged the collateral to other lenders," as alleged in the indictment.

It adds: "Wander also directed employees of 777 Partners to digitally alter bank account statements to reflects millions of dollars in cash on hand that the firm did not have. In 2021 and 2022, as 777 Partners faced major liquidity constraints, Wander solicited more than USD100 million in outside investments in 777 Partners through the sale of cumulative preferred equity membership interests in 777 Partners and an affiliated entity. Wander, Alfalla, and other employees of 777 Partners misrepresented the financial condition of the firm in soliciting these investments.

"By March 2023, Wander's scheme began to unravel. One of the firm’s lenders confronted Wander about allegations of double-pledged assets, and Wander falsely claimed there had been an error caused by 777 Partners’ antiquated computer system. A few days later, Wander again falsely assured the lender, among other things, that the double-pledging had been inadvertent. In October 2024, the High Court in London issued a winding-up order, formally declaring 777 Partners bankrupt. 777 Partners still owes its lenders hundreds of millions of dollars," the indictment states.

Separate case filed by SEC

The Securities and Exchange Commission filed separate civil charges against 777 Partners, its affiliate 600 Partners LLC, and co-founders Wander and Steven Pasko, on October 16 in the same court (case number 1:2025cv08565).

According to the SEC’s complaint, Wander, Pasko, and Alfalla raised about USD237 million from 13 investors between January 2021 and May 2024 through a preferred equity offering. The SEC alleges they falsely claimed the companies were profitable enough to pay a 10% annual dividend while concealing a USD300 million overdraw on a key credit facility.

The SEC accuses Wander and Alfalla of misusing the credit line, falsifying compliance reports, and hiding the misuse from the lender and investors. It also alleges that Wander diverted about USD33 million from investor proceeds to himself and Pasko.

The SEC seeks permanent injunctions, civil penalties, disgorgement of ill-gotten gains, and lifetime officer-and-director bans for Wander and Alfalla, as well as a similar bar for Pasko from serving at any public company.

Wander, Pasko, and Alfalla resigned from 777 Partners earlier this year, and the company is now under restructuring management.