An American businessman whose firm invested in several European football 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, owned stakes in clubs including Hertha Berlin, Genoa, Standard Liege, and Vasco da Gama.
The indictment, unsealed Thursday in federal court in Manhattan, charges Wander with wire fraud, securities fraud, and conspiracy, with most charges carrying a maximum prison term of 20 years. The FBI statement quoted US Attorney Jay Clayton alleging that Wander used his firm to cheat lenders and investors by pledging assets not owned, falsifying bank statements, and making misrepresentations about 777's financial condition.
777 Partners' story has become a cautionary tale in the trend of multi-club ownership, which European football body Uefa has identified as a threat to the integrity of games and the player trading industry. The firm had targeted a takeover of nine-time English champion Everton last year but failed amid increasing scrutiny and a lawsuit from a London-based investor.
Wander's firm moved heavily into football in 2021, buying stakes in financially distressed clubs recovering from the Covid-19 pandemic. The former chief financial officer of 777, Damien Alfalla, is cooperating with the government and made a guilty plea this week, according to the FBI. Another executive, Steven Pasko, is also targeted in a civil law court filing by the Securities and Exchange Commission.
