Investment Firm Founder Charged in Major Fraud Case
The co-founder of 777 Partners, the investment firm that previously attempted to acquire Everton Football Club, has been charged with orchestrating a massive fraud scheme totaling more than $500 million, according to federal prosecutors in the United States.
Alleged Years-Long Financial Deception
According to reports from Manhattan federal prosecutors, 44-year-old Josh Wander allegedly used fake financial documents and made false representations about his firm’s financial condition to deceive lenders and investors. Sources indicate the scheme involved pledging assets that 777 Partners did not actually own and presenting falsified bank statements.
US attorney Jay Clayton stated that Wander “used his investment firm, 777 Partners, to cheat private lenders and investors out of hundreds of millions of dollars by pledging assets that his firm did not own, falsifying bank statements, and making other material misrepresentations about 777’s financial condition.”
Sports Investments and Failed Everton Bid
The legal developments come after 777 Partners’ unsuccessful attempt to acquire Everton FC from owner Farhad Moshiri. According to the report, the potential deal for the Premier League club fell through in June 2024, before the Friedkin Group ultimately purchased the club in December of that year, as detailed in coverage of the Everton ownership transition.
Prosecutors allege that beginning in 2018, Wander began investing in what they describe as “new sectors with less certain cash-flow profiles, including streaming platforms, airlines, and professional sports teams such as Sevilla FC and Genoa CFC.” Analysts suggest these investments were made despite the Miami-based group either lacking sufficient funds or having already pledged the money to other lenders.
Federal Charges and Potential Penalties
Wander faces serious federal charges including one count of conspiracy to commit wire fraud, one count of wire fraud, and one count of securities fraud. Each of these charges carries a maximum sentence of 20 years in prison. He also faces one count of conspiracy to commit securities fraud, which carries a maximum five-year prison term.
Special agent in charge Ricky J Patel characterized the situation as “an illusion of stability that was a years-long house of cards,” suggesting the financial picture presented by 777 Partners was fundamentally deceptive.
Legal Defense and Broader Context
Wander’s legal representative Jordan Estes has reportedly denied all charges, telling Bloomberg that “this is a business dispute dressed up as a criminal case.” The defense maintains they “look forward to setting the record straight” as the case progresses.
The charges against Wander emerge amid growing scrutiny of investment practices in the sports industry, paralleling increased technological integration in gaming and entertainment sectors as seen in developments like AI gaming assistants and Microsoft’s Copilot AI enhancements. The case also coincides with market shifts in gaming distribution, including Amazon’s Xbox Game Pass offerings and the expansion of Heroic Games Launcher beyond Steam Deck platforms.
The case continues to develop as federal prosecutors prepare their evidence and the defense mounts its challenge to the allegations.
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