The former CEO of 777 Partners and a major investor in Flair Airlines has plead guilty to wire fraud and securities fraud after admitting to a scheme that defrauded lenders and investors of hundreds of millions of dollars.

Miami-based investor Joshua Wander, 45, has pleaded guilty to federal fraud charges stemming from his activities as co-founder and former chief executive officer of 777 Partners. The investment firm played a significant role in the expansion of Canadian budget carrier Flair Airlines beginning in 2021. According to the U.S. Attorney’s Office for the Southern District of New York, Wander manipulated financial records, misrepresented company assets, and improperly accessed funds belonging to investors and lenders. As part of his guilty plea, he agreed to forfeit US$500 million. Both wire fraud and securities fraud carry maximum prison sentences of 20 years, and Wander is scheduled to be sentenced on March 1.

Federal prosecutors say Wander financed his company’s expanding investment portfolio through a series of fraudulent transactions. Initially, 777 Partners operated in the insurance and structured settlement financing industry. Wander later pursued investments in airlines, professional soccer clubs and other businesses despite lacking sufficient legitimate capital to fund the acquisitions. To obtain additional financing, he pledged structured settlement assets that his company either did not own or had already offered as collateral to other lenders. He also directed employees to create false bank statements showing millions of dollars in funds that were not actually available. Prosecutors say these misrepresentations allowed him to secure financing and redirect restricted funds toward unauthorized investments.

Among 777 Partners’ investments was Edmonton-based Flair Airlines. The firm acquired a 25 percent ownership stake in 2019 and subsequently helped finance an ambitious expansion of the carrier’s operations. Through aircraft leasing arrangements, 777 Partners supplied 13 Boeing 737 Max aircraft as Flair pursued plans to grow its fleet to 50 planes and introduce additional routes throughout Canada and the United States. Wander and two other company executives held significant influence over the airline’s board. In 2022, the Canadian Transportation Agency examined whether the American investor exercised excessive control over Flair, potentially violating Canadian ownership requirements. The airline retained its operating licence after agreeing to reduce its reliance on 777 Partners and increase Canadian representation on its board.

The financial problems surrounding Wander’s business intensified in 2023 when a lender questioned why the same assets appeared to secure multiple loans. Prosecutors say Wander attempted to explain the discrepancies as administrative or technical errors. Around the same period, an aircraft leasing company repossessed four Flair Airlines planes following missed payments. Flair subsequently faced additional financial pressure in 2024 when the Canadian government sought to recover more than $67 million in unpaid taxes associated with imported aircraft. The airline negotiated a repayment arrangement. Meanwhile, 777 Partners reduced its ownership stake in Flair to less than 10 percent in 2024 as Wander’s financial and legal difficulties escalated.

Flair Airlines has since distanced itself from its former American investor. Company spokesperson Kim Bowie stated that the airline has had no business relationship with 777 Partners for more than a year and therefore cannot comment on the firm’s affairs. Federal prosecutors maintain that Wander’s fraudulent financing practices supported investments extending beyond aviation, including European soccer clubs Sevilla FC and Genoa CFC, along with an unsuccessful attempt to acquire England’s Everton Football Club. His guilty plea marks a significant development in the criminal proceedings surrounding 777 Partners, while his upcoming sentencing will determine the prison term associated with the admitted offences.

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Originally published on Canadian Fraud News.