The former boss of the investment firm behind failed Australian airline Bonza has pleaded guilty to a massive fraud scheme involving hundreds of millions of dollars.
Joshua Wander, co-founder and former chief executive of US investment firm 777 Partners, pleaded guilty to wire fraud and securities fraud in a New York court on Thursday.
777 Partners financed regional carrier Bonza, which collapsed in 2024. Getty
The 45-year-old has agreed to cough up at least US$500 million – about $720 million – in proceeds linked to the scheme, according to the US Department of Justice (DOJ).
777 Partners financed regional carrier Bonza, which collapsed in 2024 after its aircraft were repossessed and hundreds of Australian workers lost their jobs.
US prosecutors said Wander spent years defrauding lenders and investors at 777 Partners, using money intended for other purposes to help fund the company’s expansion into airlines and professional sporting clubs.
“As he has now admitted, Josh Wander used his company, 777 Partners, to steal hundreds of millions of dollars from private creditors and investors,” US Attorney Jamie McDonald said.
“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.”
Prosecutors said 777 Partners initially made its money underwriting and financing structured settlements before Wander pursued investments in other industries, including aviation and sport.
Joshua Wander, co-founder and former chief executive of US investment firm 777 Partners, pleaded guilty to wire fraud and securities fraud. Supplied
But the company did not have enough money to pay for the acquisitions, according to the DOJ.
Instead, Wander used money meant only for the structured settlement business to fund the firm’s acquisitions and other expenses.
Prosecutors said 777 Partners pledged hundreds of millions of dollars in assets to lenders despite never purchasing them or having already pledged them elsewhere.
Employees were also told to falsify bank statements to make it appear the company held millions of dollars in cash it did not have, the DOJ said.
Between 2021 and 2022, Wander raised over US$200 million from outside investors while belying its financial position.
Prosecutors said he later sought a US$20 million loan in March 2022 and supplied the lender with dozens of tampered bank statements.
Millions of dollars were also misappropriated and spent on options trades, according to the DOJ.
Creditors voted to liquidate Bonza in July 2024. Supplied
The scheme began to crumble in March 2023, when a lender confronted Wander about assets allegedly pledged twice.
Prosecutors said Wander blamed an error in the company’s outdated computer system and later claimed the double-pledging was inadvertent.
He resigned as chief executive in 2024.
Bonza launched in January 2023, pitching itself as a budget-friendly carrier connecting regional Australian destinations larger airlines rarely offered.
Just 15 months later, the company entered administration in April 2024.
About 500 workers were sacked almost two months later, with employees collectively owed an estimated $10.8 million in entitlements.
Creditors voted to liquidate Bonza in July 2024 after administrators couldn’t secure a buyer.
Wander pleaded guilty to one count of wire fraud and one count of securities fraud. Each charge carries a maximum possible prison term of 20 years.
He is due to be sentenced in March 2027.