Former 777 Partners CEO pleads guilty to defrauding lenders and investors of more than $500 million

New York – Joshua Wander, the founder and former chief executive of Miami-based investment firm 777 Partners, has pleaded guilty to wire fraud and securities fraud in a scheme that defrauded lenders and investors of more than $500 million.

Wander, 45, of Florida, entered his plea before U.S. District Judge J. Paul Oetken, according to the U.S. Attorney’s Office for the Southern District of New York. He agreed to forfeit at least $500 million in proceeds from the scheme.

“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.

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According to court filings described by prosecutors, 777 Partners initially focused on underwriting and financing structured settlements. Wander later expanded into other businesses, including airlines and professional sports teams, without sufficient funds to cover the purchases.

Prosecutors said he directed restricted lender funds toward acquisitions and company expenses. To obtain that money, he pledged hundreds of millions of dollars in assets the firm either did not own or had already pledged to other lenders.

Wander also instructed employees to alter bank statements digitally, making the company appear to hold millions of dollars in cash that it did not have.

In 2021 and 2022, he raised more than $200 million by selling preferred equity interests in 777 Partners and an affiliated entity while misrepresenting the firm’s financial condition.

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Prosecutors said Wander separately sought a $20 million loan in March 2022 and supplied dozens of doctored bank statements to conceal his misuse of the money, including spending millions on options trades.

The scheme began unraveling in March 2023 when a lender challenged him over assets pledged more than once. Wander falsely blamed the company’s outdated computer system and later claimed the problem was inadvertent. He resigned as CEO in 2024.

Each of the two offenses carries a maximum prison term of 20 years. Oetken will determine the sentence, with sentencing scheduled for March 1, 2027.

The FBI and Homeland Security Investigations investigated the case, with assistance from the Securities and Exchange Commission. The prosecution is being handled by the office’s Securities and Commodities Fraud Task Force.