Josh Wander, co-founder of Miami-based investment firm 777 Partners, is scheduled to change his plea in a federal fraud case accusing him of deceiving lenders and investors out of nearly $500 million. The hearing is set for Thursday before a Manhattan judge, just days before a trial was to begin. Wander, who previously pleaded not guilty, faces up to 20 years in prison if convicted on charges including conspiracy, wire fraud, and securities fraud. His lawyer and a spokesperson for the Manhattan U.S. Attorney’s Office declined to comment on the plea change.
Prosecutors allege Wander diverted funds from the firm’s structured settlement business starting in 2018 to invest in ventures such as streaming platforms, a budget airline, a film studio, and global football clubs including Vasco da Gama, Genoa, and Hertha BSC. When those investments failed, he allegedly used restricted lender funds to cover shortfalls, pledged already-encumbered assets, and directed employees to falsify bank statements to inflate the firm’s cash position.
In 2021 and 2022, Wander reportedly raised over $100 million through sales of preferred equity as the firm faced liquidity crises. The scandal intensified after 777 Partners’ failed attempt to buy Everton FC in 2023 triggered scrutiny of its finances. In 2024, lenders Leadenhall Capital Partners and Leadenhall Life Insurance sued, claiming the firm borrowed against $350 million in nonexistent or double-pledged assets. Wander resigned and was federally charged in October 2025. The firm filed for bankruptcy in August 2025 after creditors sought liquidation. Former CFO Damien Alfalla had already pleaded guilty and agreed to cooperate. Wander had earlier sought a pardon from President Donald Trump.
Source: Bloomberg Markets · Summarized by HeadlinesBriefing