The former leaders of a Miami-based investment firm that backed Australian airline Bonza and Canadian carrier Flair have been charged with wire and securities fraud.
In a statement, the FBI’s New York office said 777 Partners cofounder Joshua Wander and former CFO Damien Alfalla cheated private lenders and investors out of hundreds of millions of dollars by pledging assets the firm did not own, falsifying bank statements and records, and misrepresenting the company’s overall financial condition. The two are accused of stealing around $500 million.
“As alleged, the defendants, through 777 Partners, lied to lenders and investors, double-pledged collateral, and used restricted funds to bankroll risky acquisitions – putting nearly $500 million and the lifelines of structured-settlement beneficiaries at risk,” Homeland Security Investigations Special Agent in Charge Ricky J. Patel said in a news release. “In actuality, the defendants put forth an illusion of stability that was a years-long house of cards. This alleged scheme was self-serving, siphoning funds meant for victims and leaving investors and lenders holding the bag.”
Both Wander and Alfalla were charged with wire fraud, securities fraud, and conspiracy to engage in both crimes. Wire fraud, securities fraud, and conspiracy to commit wire fraud each carry a maximum of 20 years in prison, while conspiracy to commit securities fraud carries a maximum of five years in prison.
The FBI announced Wander’s indictment on Thursday. Alfalla pleaded guilty to a “fraud scheme” involving 777 Partners two days before, on Oct. 14, the agency said, and is now cooperating with the government.
Prosecutors said 777 Partners’ original business model involved underwriting and financing structured legal settlements for personal injury victims and lawsuit beneficiaries. Starting in 2018, the firm began investment proceeds from its structured settlements business into other ventures with “less certain cash-flow profiles,” including airlines, streaming services, and the professional soccer teams Sevilla FC and Genoa CFC. 777 Partners eventually overextended itself with these investments and acquisitions, the FBI said, and began pledging assets as collateral that it did not own.
Bets on Budget Airlines
Investigators did not say which airlines 777 Partners invested in, but it is known the company backed low-cost carriers Bonza and Flair.
Bonza, which went out of business in April 2024, had its base in Australia’s Sunshine Coast and aimed to connect underserved markets and underutilized airports. It operated flights for a little over a year before entering voluntary administration, which is similar to bankruptcy protection in the U.S. All of Bonza’s scheduled flights were canceled, and its workforce was laid off.
In July 2024, a court decided that Bonza would be liquidated.
Around the same time Bonza collapsed, an asset management company in the U.K., Leadenhall Capital Partners, sued 777 Partners in New York district court for allegedly double-pledging collateral. Leadenhall alleged that 777 Partners was “operating a giant shell game at best, and an outright Ponzi scheme at worst.”
Wander and 777 Partners were increasingly visible in England after attempting to buy Liverpool-based Everton F.C.
Flair, which launched in 2005, is still operating, though it has faced occasional financial difficulties. In 2023, aircraft lessor Airborne Capital seized four Flair airplanes because the carrier allegedly fell behind on its payments. Flair’s CEO suggested at the time that the repossessions were an attempt by the airline’s competitors to run it out of business.
Three other aircraft leasing companies, which used Airborne Capital to manage their leases for Flair, later sued 777 Partners for $30 million over the missed payments.
