Founder And Former Ceo Of 777 Partners Pleads Guilty To $500 Million Fraud Scheme

United States Attorney for the Southern District of New York, Jamie McDonald, announced today that JOSHUA WANDER, the founder and former CEO of 777 Partners, a Miami-based investment firm, pled guilty to wire fraud and securities fraud in connection with a scheme to defraud the lenders and investors of 777 Partners. As part of his plea, WANDER agreed to forfeit at least $500,000,000 in proceeds from his illegal scheme. WANDER pled guilty today before U.S. District Judge J. Paul Oetken.

"This Office, together with our law enforcement partners, will continue to protect investors and lenders and to ensure that those who threaten our financial markets are held accountable," said U.S Attorney Jamie McDonald. "As he has now admitted, Josh Wander used his company, 777 Partners, to steal hundreds of millions of dollars from private creditors and investors. Wander double-pledged assets, pledged fictitious assets, lied about the financial condition of his company, and even falsified bank statements, all to gain access to his victims' funds. He then put those funds to uses that his lenders never permitted, including footing the bill for 777's collection of professional soccer teams. Whether perpetrated in the private or public markets, such brazen conduct undermines the integrity of our financial system and will not be tolerated."

As alleged in the Indictment and other public filings in this case:

WANDER, the co-founder and former CEO of 777 Partners, a private investment firm, orchestrated a multi-year scheme to defraud 777 Partners' lenders and investors of more than $500,000,000. 777 Partners' initial and primary business model was to underwrite and finance structured settlements. Over time, WANDER began investing capital in new sectors, including airlines and professional sports teams. 777 Partners lacked the funds to pay for these new acquisitions, and WANDER directed that restricted funds from 777 Partners' lenders in its structured settlement business be used to cover the firm's acquisitions and expenses. To steal these funds from lenders, WANDER pledged to his lenders hundreds of millions of dollars of structured settlement assets that 777 Partners had never purchased or had previously pledged to other lenders. To conceal the fraud, WANDER directed employees to digitally alter bank account statements to reflects millions of dollars in cash on hand that the firm did not have.

In 2021 and 2022, WANDER raised more than $200 million in outside investments in 777 Partners through the sale of preferred equity interests in 777 Partners and an affiliated entity. WANDER misrepresented the financial condition of the firm in soliciting these investments. In addition, in March 2022, WANDER solicited a $20 million loan from a lender. WANDER provided the lender with dozens of doctored bank account statements to conceal that WANDER had misappropriated the funds, spending millions of dollars of options trades.

By March 2023, WANDER's scheme began to unravel. One of the firm's lenders confronted WANDER about allegations of double-pledged assets, and WANDER falsely claimed there had been an error caused by 777 Partners' antiquated computer system. A few days later, WANDER again falsely assured the lender, among other things, that the double-pledging had been inadvertent. In 2024, WANDER resigned as CEO.

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WANDER, 45, of Florida, pled guilty to one count of wire fraud and securities fraud, each of which carries a maximum sentence of 20 years in prison.

The maximum potential sentence in this case is prescribed by Congress and provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge. WANDER is scheduled to be sentenced by U.S. District Judge Oetken on March 1, 2027.

Mr. McDonald praised the outstanding work of the Federal Bureau of Investigation and Homeland Security Investigations. Mr. McDonald also expressed appreciation for the assistance of the U.S. Securities and Exchange Commission.

This case is being handled by the Office's Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Thomas S. Burnett, Marguerite B. Colson, Sarah Mortazavi, and Alexandra N. Rothman are in charge of the prosecution.