Josh Wonder: Co-founder of failed Everton bid accused of $500 million fraud

The co-founder of investment firm 777 Partners – which made a failed bid for Premier League club Everton – has been accused of defrauding lenders and investors out of more than $500m (£372m).

Josh Wander, 44, lied and used forged financial documents to inflate the 777’s finances, according to federal prosecutors in Manhattan in the United States.

A potential deal for 777 to take over the Toffees in June 2024 fell through, before new owners Friedkin Group bought the club from Farhad Moshiri in December that year.

“Wander used his investment firm, 777 Partners, to defraud lenders and private investors out of hundreds of millions of dollars by pledging assets his company did not own, falsifying bank statements, and making other material false statements about the financial condition of the 777,” said U.S. Attorney Jay Clayton.

Special Agent in Charge Ricky J. Patel said the picture presented of the 777’s financial condition was “an illusion of stability that has been a house of cards for years.”

According to prosecutors, starting in 2018, Wander began investing in “new sectors with lower cash flow profiles, including streaming platforms, airlines, and professional sports teams such as Sevilla FC and Genoa CFC.”

They said he did so knowing that the Miami-based group either did not have the money or had already pledged it to other lenders and tried to hide it.

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 penalty of five years in prison.

Wonder’s lawyer, Jordan Estes, said he denied all the accusations, telling Bloomberg: “This is a business dispute disguised as a criminal case. We look forward to setting the record straight.”