NEW YORK — The co-founder of the investment firm 777 Partners pleaded guilty Thursday to fraud charges and agreed to pay back $500 million. Josh Wander, 45, entered the plea in a Manhattan federal court, the Associated Press reported.
He pleaded guilty to wire fraud and securities fraud. Sentencing is set for March 1, and he faces up to 40 years in prison. He remains free on bail until then.
What he admitted
Wander admitted that in 2021 and 2022 he borrowed money based on numbers that overstated the firm’s assets. Prosecutors say he used 777 Partners, which is based in Miami, to cheat private lenders and investors out of hundreds of millions of dollars. They say he did it by pledging assets the firm did not own, falsifying bank statements and making other false claims about the firm’s finances.
Court filings described how bank statements were digitally altered to show millions of dollars in cash the firm did not have. The U.S. Attorney’s office for the Southern District of New York said the scheme began to fall apart by March 2023. Wander stepped down as CEO in 2024.
Speaking to Judge J. Paul Oetken, Wander said he knew what he did was wrong and was deeply sorry.
The money
As part of the plea, Wander agreed to forfeit at least $500 million in proceeds from the scheme and to pay $500 million in restitution to investors.
Who is 777 Partners
777 Partners was an investment firm that moved into sports and entertainment. In 2021 it began buying stakes in financially struggling European soccer clubs that had been hurt by playing in empty stadiums during the COVID-19 pandemic. It also backed airlines, including Australia’s Bonza, which collapsed, and Canada’s Flair.
In 2024, the firm failed in its biggest soccer push. It was unable to buy Everton, the nine-time English champions, after questions about the business came up and a London-based investor filed a lawsuit in New York.
What investors say
Leadenhall Capital Partners, an investor that sued over its dealings with 777, said the guilty plea backs up claims it made more than two years ago. Its CEO, Luca Albertini, said the agreement to forfeit proceeds suggests the chance of getting money back may have improved.
What’s next
The next step is Wander’s sentencing on March 1. A judge decides the final sentence, and the maximum is not always imposed.
