The FBI on Thursday indicted the co-founder of the disgraced U.S. investment firm that tried to take over top Premier League club Everton in 2023.
Joshua Wander led Miami-based 777 Partners, which the FBI said schemed to defraud lenders and investors of more than $500 million. The federal agency charged Wander with conspiracy to commit wire fraud, wire fraud, conspiracy to commit securities fraud, and securities fraud. Three of those charges each carry a maximum sentence of 20 years in prison.
“As alleged, 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,” Jay Clayton, U.S. Attorney for the Southern District of New York, said in a statement.
The firm acquired stakes in several soccer teams including La Liga’s Sevilla, Serie A’s Genoa, and clubs in Belgium, France, Brazil, and Australia. But its attempt at Everton was its most high-profile move in soccer.
In the fall of 2023, the storied club was in dire need of a lifeline. After posting five straight years of losses, a $190 million investment from MSP Sports Capital for 25% of the club fell through. The team was struggling on the pitch to avoid relegation, spending massively on its new stadium, and careening toward eventual violations of spending rules. The 777 Partners investment seemed like just the bailout Everton needed.
The firm made an agreement to acquire 94.1% of the club for about $685 million in September of 2023, with the deal expected to close by the end of that year. But 777 reportedly failed to turn over its audited financial statements, so the deal never received regulatory approval and expired. By May, 777 was sued for fraud and misleading investors. (Everton moved on, and was bought by U.S. billionaire Dan Friedkin in a deal that closed in December.)
Damien Alfalla, 777’s former CFO, pleaded guilty earlier this week, the FBI said. The Securities and Exchange Commission also filed a civil suit Thursday against Wander, Alfalla, and Steven Pasko, the firm’s other cofounder.
The FBI said 777’s business model was to finance structured settlements, but Wander began using restricted funds from lenders to cover spending in areas such as sports, airlines, and streaming platforms. This spending led to cash issues that Wander tried to cover up by pledging to lenders more than $350 million in assets he did not have or had already promised away, the FBI said, and told employees to alter bank statements.
