For those familiar with this website, there is a dedicated page highlighting multiple reports, analysis and podcasts relating to Wander, 777 Partners and others. This can be found here – Everton & 777 Partners

It should serve as useful background material for anyone seeking further information.

Criminal Indictee

The legal status of Joshua Wander, co-founder and former Managing Partner of Miami-based investment firm 777 Partners, has now shifted from just being a civil defendant to but now a criminal indictee. 

Federal prosecutors, operating out of the U.S. District Court for the Southern District of New York (SDNY) in Manhattan, unsealed an indictment charging Wander with multiple severe financial felonies. These charges stem from an alleged long-running scheme to defraud private lenders and investors out of “more than $500 million” by manipulating the firm’s core assets and financial documentation.

Primary Criminal Counts and Prosecutorial Coordination

The primary criminal counts unsealed against Wander et al include Wire Fraud, Securities Fraud, and Conspiracy to commit each of those crimes. The prosecution, led by the U.S. Attorney’s Office for the SDNY, emphasise that the alleged scheme involved using 777 Partners to cheat investors by making material misrepresentations regarding the firm’s financial condition.

This criminal indictment was deployed concurrently with a separate civil enforcement action initiated by the U.S. Securities and Exchange Commission (SEC) against Wander, his co-founder Steven Pasko, and related entities.

This synchronised approach by federal law enforcement bodies, i.e. a criminal prosecution and a civil regulatory case unfolding nearly simultaneously, creates maximum legal pressure and significantly increases the complexity of the defense. 

Furthermore, the federal action follows and corroborates a massive civil lawsuit filed approximately a year earlier by London-based lender Leadenhall Capital Partners LLP in SDNY, which explicitly alleged fraud and racketeering (RICO) and named Wander as a co-defendant. 

The coordination among these various actions ensures that civil discovery can bolster criminal evidence, and criminal findings, particularly the guilty plea of a key insider, strengthen civil recovery efforts.

Critical Procedural Update and Corporate Implications

A pivotal development in the federal criminal case is the cooperation of Damien Alfalla, the former Chief Financial Officer (CFO) of 777 Partners, who pleaded guilty to an unspecified charge on October 14, 2025.

This cooperation presents a huge evidentiary vulnerability for Wander’s defense, as Alfalla possesses direct knowledge of the alleged scheme’s internal execution. The criminal charges themselves merely confirm the catastrophic financial instability that had been suggested by earlier corporate actions, such as the forced departure of Wander and Pasko from their managing partner roles in May 2024 amidst growing financial distress.

 The allegations underpin the narrative that 777’s aggressive global acquisitions, including (as we know) its high-profile multi-club ownership portfolio in football, were financed through systematically fraudulent means.

The scope of legal action against Wander and 777 Partners is consolidated in the following table:

Consolidated Legal Actions Against Josh Wander and 777 Partners

The Federal Criminal Indictment (United States v. Wander)

The indictment unsealed in Manhattan federal court provides the official foundation for the charges against Joshua Wander. The jurisdiction of the SDNY was established through the alleged use of interstate wires to facilitate the scheme (Wire Fraud) and financial transactions related to securities fraud conducted within the district.

The prosecution’s focus extends beyond financial loss. U.S. Attorney Jay Clayton articulated that the prosecution was essential to upholding the “integrity and stability of our credit markets and our financial system more broadly,” underscoring that the actions of 777 Partners executives allegedly undermined faith in the financial markets themselves.

The specific charges are based on federal statutes defining financial crime:

• Wire Fraud (18 U.S.C. § 1343): This charge targets the scheme to defraud lenders by using interstate or foreign electronic communications. The alleged mechanism involved obtaining hundreds of millions of dollars by fraudulently pledging assets that were either already encumbered or did not exist. This violation necessitates the use of communications to transmit false compliance reports, financial statements, and other deceitful documentation.
• Securities Fraud (15 U.S.C. § 78j(b) and Rule 10b-5): This charge addresses deception in connection with the purchase or sale of securities, specifically related to the firm’s preferred equity offering. The violation rests on making false or misleading statements concerning 777 Partners’ precarious financial health, its liquidity and profitability, to induce investment.
• Conspiracy Charges: Wander is charged with Conspiracy to commit both Wire Fraud and Securities Fraud. By charging conspiracy, prosecutors benefit from only requiring proof of an agreement between Wander and others (such as the cooperating CFO Alfalla) to execute the fraud, followed by at least one overt act in furtherance of that agreement.

Allegations of Intent and Sentencing Exposure

The alleged misconduct spans approximately three-and-a-half years, from January 2021 to May 2024, a period during which the firm reportedly engaged in aggressive, debt-fueled expansion despite profound internal liquidity issues.

 A core element of the indictment is the emphasis on acts like “falsifying bank statements” and “pledging assets that his firm did not own”. These acts are critical because they constitute clear, deliberate steps of deception, satisfying the high standard of criminal intent (scienter) required for conviction. Allegations of documentary forgery and misrepresentation prevent the defense from presenting the case as simple business negligence.

Following his surrender, Wander was presented before U.S. Magistrate Judge Ona T. Wang. 

The maximum statutory sentence for the primary fraud felonies, Wire Fraud and Securities Fraud, is 20 years of federal imprisonment for each count.

 Given the alleged loss amount exceeding $500 million, mandatory federal sentencing guidelines dictate a severely elevated offense level, indicating that Wander and co faces the prospect of a substantial prison term if convicted. 

By stacking four major felony counts (two substantive and two conspiracy counts), the prosecution maximises the aggregate statutory penalties and sentencing guidelines exposure, applying maximum leverage on the defendant.

Details of Federal Criminal Charges Filed Against Josh Wander

The initial business of 777 Partners was built on acquiring structured settlements, which are financial arrangements providing periodic payments to injury victims. To finance these purchases, 777 relied on credit facilities from private lenders. Critically, these credit facilities were structured as secured debt, requiring 777 Partners to pledge the future payment streams as collateral, asserting that the collateral was “free and clear” of any prior security interest.

Fraudulent Collateral Pledging and Misappropriation

The central criminal conduct alleged is the systemic abuse of this collateral. The primary fraudulent act involves “double-pledging” assets, meaning the same structured settlement payment streams were used to secure multiple, distinct debt facilities.

Evidence presented in the civil litigation suggests that over 1,600 assets, valued at approximately $185 million, were double-pledged to both Leadenhall and another lender Credigy. 

Furthermore, Wander is accused of pledging assets that 777 Partners did not own or that were non-existent, thereby securing debt based on entirely phantom collateral.

 This misuse of secured collateral fundamentally corrupted the lending process in this highly specialised sector.

Concealment and Diversion of Funds

To maintain the façade of a secured credit facility, the scheme necessitated repeated acts of concealment. 777 Partners was required to submit compliance reports certifying the collateral’s unencumbered status, a confirmation allegedly delivered fraudulently over 40 times.

 When the fraud began to unravel, internal efforts to cover up the scheme reportedly included altering internal records before site inspections and submitting forged financial statements to lenders in late 2022 to prevent the confirmation of the double-pledging.

Funds generated through these fraudulently secured credit facilities were allegedly diverted, misused, to fund aggressive acquisitions of non-core, speculative assets.

This included purchasing stakes in an Australian airline and a globally scattered multi-club soccer portfolio encompassing teams such as Hertha Berlin (Germany), Genoa (Italy), Standard Liege (Belgium), and Vasco da Gama (Brazil).

By using collateralized debt for high-risk ventures, the firm effectively treated the facilities as an “illegal and unsecured personal piggy bank”. The constant shuffling of money between financially distressed entities to service previous debts and finance continued expansion, which one civil suit characterises as a cycle of “robbing Peter to pay Paul”, exhibits the key structural characteristics of a financial shell game, or at worst, a Ponzi scheme.

Corroborating Civil and Regulatory Actions in SDNY

The federal criminal case does not exist in isolation; it is reinforced by simultaneous and preceding civil actions filed in the SDNY, creating comprehensive legal and financial exposure for Wander and 777 Partners.

The U.S. Securities and Exchange Commission (SEC) Enforcement Action

The SEC filed civil charges against Wander and Pasko, alleging misuse of funds and collateral. The regulatory focus specifically targets a fraudulent preferred equity offering that raised approximately $237 million from 13 investors between January 2021 and May 2024.

 The core violation involved the misrepresentation of 777 Partners’ financial health. Defendants allegedly assured investors that the firm possessed “substantial positive net income sufficient to pay investors a 10% annual dividend,” when, in reality, Wander and Alfalla knew or recklessly disregarded that the firm was experiencing a “severe and worsening liquidity crisis” with no realistic prospects of generating sufficient income.

 The SEC’s choice to file in federal court rather than pursue an administrative action reflects an alignment with recent Supreme Court rulings impacting agency adjudicatory powers, maximising the finality and enforceability of any resulting civil penalties.

The Leadenhall Capital Partners RICO Lawsuit

The private civil litigation initiated by Leadenhall Capital Partners in May 2024 is foundational, specifically alleging a violation of the Racketeer Influenced and Corrupt Organizations Act (RICO), which requires demonstrating a “pattern of racketeering activity” through predicate acts like wire fraud.

 Leadenhall’s complaint meticulously details the alleged scheme, including the double-pledging of collateral.

Crucially, the Leadenhall suit introduces external entanglement, naming Kenneth King, who controls Advantage Capital Holdings LLC (A-CAP). The suit alleges A-CAP held a first-priority “all asset lien” and exerted control over nearly all facets of 777 Partners’ operations.

 This level of operational control is alleged to have prevented 777 Partners from fulfilling its obligation to repay Leadenhall’s debt. This claim of external financial dominance and control has major implications, potentially extending liability to third parties involved in maintaining the solvency of the alleged fraud enterprise.

The synergy between the criminal and civil cases is overwhelming. The civil complaints quantify the scope of the alleged fraud, citing aggregate losses exceeding $500 million, encompassing $237 million from equity investors and over $350 million in fraudulently secured debt. The SEC and Leadenhall complaints collectively establish that the fraudulent capital injection was a calculated system compensating for profound operational losses. The scheme was structured to target two distinct capital streams, namely sophisticated secured lenders via collateral fraud and preferred equity investors via misrepresented earnings, thereby demonstrating a highly calculated strategy of continuous fraudulent finance.

Legal Defense Strategy and Cooperation Risks

Facing the weight of federal charges, Wander’s legal counsel has publicly characterised the prosecution as merely a “business dispute dressed up as a criminal case,” stating that Wander looks forward “to setting the record straight”. 

This defense attempts to dismiss the allegations as complex, negotiable commercial disagreements rather than deliberate, intentional criminal deception.

Erosion of the “Business Dispute” Claim

The viability of this defense is undermined by the specificity of the federal indictment. Allegations such as “falsifying bank statements” and forgery, explicitly cited in the criminal and civil documents, introduce irrefutable evidence of criminality that extends far beyond simple contractual breach or business negligence. 

This documentary evidence, combined with testimony from a key insider, fundamentally contradicts the narrative of a mere commercial conflict.

The Impact of CFO Cooperation

The cooperation agreement secured with former CFO Damien Alfalla represents the most significant tactical advantage for the SDNY prosecution team.

 Alfalla possesses direct, intimate knowledge concerning the internal mechanisms of the financial manipulations, including the creation and dissemination of false documents, the intentional diversion of funds, and the communication of fraudulent details to victims. 

Alfalla’s testimony can provide direct evidence of Wander’s criminal intent and personal involvement, severely neutralising the efficacy of the defense strategy.

Furthermore, the legal risk is compounded by the parallel civil proceedings. Any testimony or admissions made by Wander or co-founder Steven Pasko in the Leadenhall RICO or SEC cases can be leveraged by federal prosecutors in the criminal trial as admissions against interest. 

Steven Pasko, though targeted in the civil suits, was not named in the criminal indictment alongside Wander and Alfalla. This strategic targeting often signals the government’s application of pressure on peripheral executives to obtain further cooperation and isolate the primary defendant.

Given the combination of damning documentary evidence, a cooperating insider, and massive statutory exposure (20 years maximum sentence per count), the probability of conviction for Wander at trial is exceedingly high. 

Therefore, the trajectory of the case is likely to centre on intense plea negotiations. The scale of the alleged $500 million fraud suggests the defense’s strategy must primarily pivot toward securing a reduction in the inevitable sentence, possibly through extensive cooperation on Wander’s part.

Corporate and Industry Ramifications

The criminal indictment of 777 Partners’ co-founder confirms the systemic failure and financial distress of the Miami-based firm.

 Wander and Pasko were removed as managing partners in May 2024, replaced by executives from B. Riley, Ian Ratner and Ronald Glass, tasked with operational restructuring. The firm faces the freezing of critical credit facilities and the strong probability of forced liquidation of assets to satisfy the growing billions in debt and legal claims.

The allegations confirm that the capital utilised for 777’s aggressive global acquisition strategy, spanning aviation and international sports, was derived from the underlying structured settlement fraud.

The 777 Partners saga now stands as a high-profile “cautionary tale” regarding the risks inherent  not only in the MCO model but in inadequate vetting of potential owners.  The association of this global sports empire with an alleged $500 million financial fraud validates concerns long held by European governing bodies like UEFA, which identified MCO as a threat to the integrity of both games and the player transfer market.

The ability of 777 Partners to allegedly divert secured collateral from US-based, regulated structured settlements to fund speculative international acquisitions (sports, aviation) highlights a critical vulnerability in cross-jurisdictional financial regulation. 

This failure to monitor the traceability and end-use of specialised collateralized assets will inevitably prompt stricter financial transparency mandates and enhanced source-of-wealth scrutiny for future investors attempting to leverage MCO structures globally.

The criminal charges filed against Josh Wander in the SDNY represent the legal culmination of a multi-year, systemic financial fraud scheme. The evidence, corroborated by detailed civil racketeering complaints and the cooperation of the former CFO, suggests intentional criminal deception involving the falsification of financial documentation and the double-pledging of collateral to fund reckless expansion. Wander faces maximum federal sentencing exposure and a high probability of conviction.

From a footballing and governance perspective the alleged behaviours of Wander and co, often documented on this website during the time Moshiri claimed them to be appropriate future owners of Everton Football Club point to the absolute requirement for the new Independent Football Regulator to take its responsibilities regarding the suitability of would-be owners incredibly seriously.

We at Everton have been incredibly fortunate, others, including those within the 777 portfolio have not. Furthermore, and perhaps more importantly, the risk of systemic financial failure within the game grows unless greater controls are enforced and higher levels of due diligence prior to entry into the game are introduced.

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