The co-founder of investment firm 777 Partners – which made an unsuccessful bid to buy Premier League club Everton – has been charged with defrauding lenders and investors of more than $500 million (£372m).
Josh Wander, 44, lied and used fake financial documents to inflate the finances of 777, according to Manhattan federal prosecutors in the United States.
A potential deal for 777 to acquire the Toffees fell through in June 2024, before new owners the Friedkin Group bought the club from Farhad Moshiri in December that year.
“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,” said US attorney Jay Clayton.
Special agent in charge Ricky J Patel said the picture put forward of 777’s finances was “an illusion of stability that was a years-long house of cards”.
According to prosecutors, starting in 2018, Wander began investing in “new sectors with less certain cash-flow profiles, including streaming platforms, airlines, and professional sports teams such as Sevilla FC and Genoa CFC”.
They said he did this knowing that the Miami-based group either did not have the funds or had already pledged it to other lenders, and attempted to conceal this.
Wander, of Miami, Florida, is charged with one count of conspiracy to commit wire fraud, one count of wire fraud, and one count of securities fraud, each of which carries a maximum sentence of 20 years in prison.
He is also charged with one count of conspiracy to commit securities fraud, which carries a maximum sentence of five years in prison.
Wander’s lawyer Jordan Estes said he denied all charges, telling Bloomberg: “This is a business dispute dressed up as a criminal case. We look forward to setting the record straight.”
