Founder and CFO of Investment Firm 777 Partners Charged With $500 Million Fraud Scheme
An indictment filed in federal court accuses Joshua Wander, cofounder of Miami-based 777 Partners, of leading a scheme that bilked lenders and investors of more than $500 million. The charges include conspiracy to commit wire fraud, wire fraud, conspiracy to commit securities fraud, and securities fraud. The case centers on alleged misuses of restricted funds and falsified financial statements.
The indictment says Wander diverted money from 777 Partners’ structured-settlement business into higher-risk investments like streaming platforms, airlines, and soccer clubs beginning in 2018. Prosecutors contend those moves violated the terms of credit facilities and created severe cash and collateral shortfalls. Former CFO Damien Alfalla has already pled guilty and is cooperating with investigators.
According to the filing, Wander and others concealed shortfalls by pledging more than $350 million in assets as collateral even when the firm did not own those assets or had already pledged them elsewhere. The indictment also alleges employees were instructed to digitally alter bank statements to show cash balances that did not exist. Those actions are the core of the alleged fraud that left lenders, investors, and structured-settlement beneficiaries exposed.
777 Partners’ original business model focused on underwriting and financing structured settlements, where injury victims receive periodic payments instead of a lump sum. The firm used credit facilities collateralized by future settlement payments and cash to purchase and securitize portfolios. Over time it grew into one of the largest buyers on the secondary market for these settlements.
Prosecutors say Wander solicited more than $100 million in outside capital in 2021 and 2022 by selling preferred equity interests while misrepresenting the firm’s financial picture. The indictment states those investor solicitations included false statements about liquidity and collateral. By March 2023, one lender flagged allegations of double-pledged assets and the alleged cover stories began to unravel.
When confronted about double-pledged collateral, Wander reportedly blamed an antiquated computer system and then called the errors inadvertent. In October 2024, a High Court in London issued a winding-up order declaring 777 Partners insolvent. The firm still reportedly owes hundreds of millions to its lenders.
Wander, 44, of Miami, is charged with offenses that carry up to 20 years in prison for each wire fraud and securities fraud count, plus a separate conspiracy to commit securities fraud count that carries up to five years. Alfalla, 59, of Pelham, New York, faces the same set of charges and potential penalties. Sentencing will be determined by a judge in accordance with federal law.
Prosecutors say the scheme placed nearly $500 million and the trust placed in structured-settlement lifelines at risk by double-pledging collateral and using restricted funds to underwrite risky purchases. The Southern District of New York’s Securities and Commodities Fraud Task Force is leading the prosecution. Assistant U.S. Attorneys Marguerite B. Colson, Sarah Mortazavi, and Alexandra Rothman are assigned to the case.
“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 U.S. Attorney Jay Clayton. “When financial firms lie to their lenders, they do not merely breach contracts. They undermine the integrity and stability of our credit markets and our financial system more broadly. America’s financial markets are a source of strength and the envy of the world. The women and men of the SDNY and our law enforcement partners will continue to work tirelessly to protect our investors and our markets. We would also like to thank the U.S. Securities and Exchange Commission, which separately initiated civil proceedings against the defendants today.”
“Joshua Wander and Damien Alfalla, the cofounder and CFO respectively of the 777 Partners investment firm, allegedly stole more than $500 million from his company’s lenders and investors through fabricated lies of success and doctored financial records,” said FBI Assistant Director in Charge Christopher G. Raia. “The defendants’ alleged deceit targeted the wallets of his trusting stakeholders to obfuscate the failing fiscal ventures of the business. With our law enforcement and prosecutorial partners, the FBI maintains its steadfast determination to disrupt any fraudulent scheme seeking to exploit victims before they’re left with millions in losses.”
“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,” said HSI Special Agent in Charge Ricky J. Patel. “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. HSI New York, together with the U.S. Attorney’s Office for the Southern District of New York and the FBI’s New York Field Office, will not stop protecting the United States financial markets and our unsuspecting communities from unscrupulous actors.”
Federal authorities emphasize the larger impact when financial firms mislead lenders and investors: it weakens confidence in credit markets and can harm ordinary people who rely on structured settlements. The case underscores how allegedly mixing restricted funds with risky bets can leave vulnerable beneficiaries exposed. Investigations continue as prosecutors and law enforcement pursue accountability.
Editor’s Note: The Schumer Shutdown is here. Rather than put the American people first, Chuck Schumer and the radical Democrats forced a government shutdown for healthcare for illegals. They own this.
