US prosecutors unveiled criminal fraud charges against the co-founder of 777 Partners, an investment firm that tapped into Wall Street’s river of insurance money to back risky deals.
Semafor previously reported that Josh Wander was under criminal investigation by the US Attorney’s office in Manhattan, which on Thursday accused him of bilking investors out of $500 million by double-pledging collateral and photoshopping financial statements.
Miami-based 777 came seemingly out of nowhere in 2023 to bid for one of the most prestigious (and financially troubled) soccer teams in England, Everton. The source of its money was opaque, always a red flag on Wall Street. Semafor traced it to a pair of US life insurers that had funneled policyholders’ cash to 777’s Bermudan reinsurer, which invested it into sports teams, airplanes, a payday lender, and a failing budget airline, among other bets generally unsuited for insurance guarantees.
Wander is accused of lying to lenders and investors, not policyholders, but the case is likely to focus more attention on Wall Street’s insurance push. “This is a business dispute dressed up as a criminal case,” a lawyer for Wander told Semafor. “We look forward to setting the record straight.”