Wander Indicted
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Re: Wander Indicted
from the Globe and Mail:
The Miami investor behind Flair Airlines’ rapid expansion five years ago has been charged with defrauding lenders and investors of US$500-million in the United States.
Joshua Wander, cofounder of private equity company 777 Partners and a former director of Edmonton-based Flair, surrendered to authorities on Thursday and was charged with securities and wire fraud in New York.
Mr. Wander, 44, allegedly cheated investors and lenders out of hundreds of millions of dollars by falsifying bank statements, borrowing money against assets his firm did not own and doctoring 777 Partners’ financial records, U.S. Attorney Jay Clayton said in a statement.
Mr. Wander allegedly spent the money on risky business ventures – professional soccer teams and airlines, authorities allege.
The charges have not been proven in court. Mr. Wander’s lawyer, Jordan Estes, told Bloomberg News he denies the charges. “This is a business dispute dressed up as a criminal case. We look forward to setting the record straight,” he said.
Damien Alfalla, the former CFO of 777 Partners, has pleaded guilty in the case and is co-operating with the U.S. government.
The initial business of 777 Partners was purchasing and monetizing structured settlements, which are regular insurance payments to personal injury victims and lawsuit winners. According to the Federal Bureau of Investigation, Mr. Wander in 2018 began investing funds in “less certain” cash generators. His investments included Flair, Bonza airline of Australia, streaming services and European soccer teams Sevilla FC and Genoa CFC. The company’s bid to buy Everton Football Club of the English Premier League fell through last year.
When 777’s ventures led to “significant cash and collateral shortfalls,” Mr. Wander allegedly tried to hide the losses by borrowing US$350-million using assets he did not own or had already pledged to other lenders, the FBI said in a statement.
“The defendants put forth an illusion of stability that was a years-long house of cards,” FBI Special Agent Ricky J. Patel said. “This alleged scheme was self-serving, siphoning funds meant for victims and leaving investors and lenders holding the bag.”
“777 Partners still owes its lenders hundreds of millions of dollars,” the FBI said. A British court declared the company bankrupt in 2024.
Flair bills itself as a discount airline, flying 14 Boeing 737s to destinations in North America and the Caribbean. Eric Tanner, chief commercial officer of Flair, said on Friday that “Flair has no connection, debt, equity, or otherwise, with 777 Partners.”
Miami-based 777 Partners bought 25 per cent of Edmonton-based Flair in 2019 and held it until May, 2024, when it cut its stake to less than 10 per cent amid heightening legal scrutiny and mounting financial troubles.
In addition to being a major investor, 777 Partners was Flair’s main source of leased aircraft and drove the airline’s expansion. Flair quickly went from a handful of aircraft to 18 by the summer of 2021, with announced plans to reach 60.
The airline told The Globe and Mail at the time it was “pleased to be associated with Mr. Wander and 777 Partners. We could not imagine a more supportive director, shareholder and lender.”
The involvement of 777 Partners in Flair drew the attention of the Canadian Transportation Agency in 2021. The regulator found 777 Partners’ control, investment and three of five board seats allowed it to call the shots, in violation of Canadian ownership laws. Flair retained its operating licence after loosening 777 Partners’ grip.
But Flair’s travails did not end there. In 2023, leasing companies seized four Flair planes for missed rent payments.
The Globe and Mail reported in 2024 the federal government obtained a court order allowing it to seize and sell Flair assets to recoup more than $67-million in unpaid taxes. The two sides reached a payment agreement.
The Miami investor behind Flair Airlines’ rapid expansion five years ago has been charged with defrauding lenders and investors of US$500-million in the United States.
Joshua Wander, cofounder of private equity company 777 Partners and a former director of Edmonton-based Flair, surrendered to authorities on Thursday and was charged with securities and wire fraud in New York.
Mr. Wander, 44, allegedly cheated investors and lenders out of hundreds of millions of dollars by falsifying bank statements, borrowing money against assets his firm did not own and doctoring 777 Partners’ financial records, U.S. Attorney Jay Clayton said in a statement.
Mr. Wander allegedly spent the money on risky business ventures – professional soccer teams and airlines, authorities allege.
The charges have not been proven in court. Mr. Wander’s lawyer, Jordan Estes, told Bloomberg News he denies the charges. “This is a business dispute dressed up as a criminal case. We look forward to setting the record straight,” he said.
Damien Alfalla, the former CFO of 777 Partners, has pleaded guilty in the case and is co-operating with the U.S. government.
The initial business of 777 Partners was purchasing and monetizing structured settlements, which are regular insurance payments to personal injury victims and lawsuit winners. According to the Federal Bureau of Investigation, Mr. Wander in 2018 began investing funds in “less certain” cash generators. His investments included Flair, Bonza airline of Australia, streaming services and European soccer teams Sevilla FC and Genoa CFC. The company’s bid to buy Everton Football Club of the English Premier League fell through last year.
When 777’s ventures led to “significant cash and collateral shortfalls,” Mr. Wander allegedly tried to hide the losses by borrowing US$350-million using assets he did not own or had already pledged to other lenders, the FBI said in a statement.
“The defendants put forth an illusion of stability that was a years-long house of cards,” FBI Special Agent Ricky J. Patel said. “This alleged scheme was self-serving, siphoning funds meant for victims and leaving investors and lenders holding the bag.”
“777 Partners still owes its lenders hundreds of millions of dollars,” the FBI said. A British court declared the company bankrupt in 2024.
Flair bills itself as a discount airline, flying 14 Boeing 737s to destinations in North America and the Caribbean. Eric Tanner, chief commercial officer of Flair, said on Friday that “Flair has no connection, debt, equity, or otherwise, with 777 Partners.”
Miami-based 777 Partners bought 25 per cent of Edmonton-based Flair in 2019 and held it until May, 2024, when it cut its stake to less than 10 per cent amid heightening legal scrutiny and mounting financial troubles.
In addition to being a major investor, 777 Partners was Flair’s main source of leased aircraft and drove the airline’s expansion. Flair quickly went from a handful of aircraft to 18 by the summer of 2021, with announced plans to reach 60.
The airline told The Globe and Mail at the time it was “pleased to be associated with Mr. Wander and 777 Partners. We could not imagine a more supportive director, shareholder and lender.”
The involvement of 777 Partners in Flair drew the attention of the Canadian Transportation Agency in 2021. The regulator found 777 Partners’ control, investment and three of five board seats allowed it to call the shots, in violation of Canadian ownership laws. Flair retained its operating licence after loosening 777 Partners’ grip.
But Flair’s travails did not end there. In 2023, leasing companies seized four Flair planes for missed rent payments.
The Globe and Mail reported in 2024 the federal government obtained a court order allowing it to seize and sell Flair assets to recoup more than $67-million in unpaid taxes. The two sides reached a payment agreement.
Re: Wander Indicted
When your business partner pled guilty and is cooperating it is likely he threw Wander under the bus in exchange for a reduced sentence.
Re: Wander Indicted
I feel for the Flair pilots. It must be so stressful worrying about your job at a company that has a major financial scandal every few months. I hope they can land at somewhere more stable if this is the final nail.
