An American businessman whose firm invested in several European soccer clubs has been indicted in New York on charges of financial wrongdoing in an alleged $500m fraud scheme. Josh Wander, co-founder of Miami-based 777 Partners, faces charges of wire fraud, securities fraud and conspiracy.
777 Partners owned stakes in soccer clubs including Hertha Berlin in Germany, Genoa in Italy, Standard Liege in Belgium and Vasco da Gama in Brazil, as well as an Australian airline. The firm's story became a cautionary tale in the trend of multi-club ownership, which European soccer body Uefa has identified as a threat to the integrity of games.
“As alleged, Wander used his investment firm, 777 Partners, to cheat private lenders and investors out of hundreds of millions of dollars by pledging assets that his firm did not own, falsifying bank statements and making other material misrepresentations about 777’s financial condition,” said Jay Clayton, United States Attorney for the Southern District of New York, in an FBI statement.
The indictment was unsealed Thursday in federal court in Manhattan. Most of the charges carry a maximum prison term of 20 years. Wander and 777 had failed last year in targeting their biggest soccer acquisition, nine-time English champion Everton, amid increasing scrutiny and a lawsuit from a London-based investor.
The former chief financial officer at 777, Damien Alfalla, “is cooperating with the government,” the FBI said, and made a guilty plea this week. Another 777 executive, Steven Pasko, is also targeted in a civil law court filing by the Securities and Exchange Commission.
