Federal prosecutors on Thursday unsealed an indictment charging Josh Wander, co-founder of collapsed investment firm 777 Partners, with wire fraud, securities fraud and conspiracy, alleging he fabricated financial records and misled lenders and investors in a scheme worth up to $500 million.
The 17-page filing in Manhattan federal court says Wander used bogus documents and inflated claims about 777’s finances to obtain loans, including pledging more than $350 million in collateral that the firm either did not own or had already pledged elsewhere, The New York Times reported.
Prosecutors also allege he diverted loan proceeds to buy stakes in soccer clubs and cover the costs tied to a loss-making airline, the newspaper said.
“This is a business dispute dressed up as a criminal case,” Wander’s attorney Jordan Estes said told the news outlet.
The indictment caps nearly two years of turmoil around 777 Partners, which once touted $10 billion in assets and became one of the most aggressive buyers in global soccer. Wander drew worldwide attention with an attempt to acquire Everton FC, even as lawsuits, missed payments and questions over the firm’s balance sheet mounted.
Read more at The New York Times