Flair Airlines Expansion Investor Faces US$500 Million Fraud Charges

Joshua Wander, cofounder of 777 Partners, has been charged with defrauding lenders and investors of $500 million in the United States. This significant fraud case emerged as the Miami investor was involved in the rapid growth of Flair Airlines over the last five years.

Details of the Charges Against Joshua Wander

Wander, aged 44, surrendered to authorities and faces charges of securities and wire fraud in New York. U.S. Attorney Jay Clayton outlined that he allegedly deceived investors and lenders by falsifying bank statements, using assets he didn’t own as collateral, and manipulating financial records of his firm.

• Wander allegedly invested in high-risk ventures, including professional soccer franchises and airlines.
• He reportedly borrowed $350 million against assets to mask financial losses.
• The charges are yet to be proven in court.

777 Partners Background and Operations

777 Partners had shifted its business focus from acquiring structured settlements to investing in volatile cash-generating enterprises by 2018. These investments included:

• Flair Airlines
• Bonza Airlines in Australia
• Streaming services
• European soccer teams such as Sevilla FC and Genoa CFC

Despite ambitions, their attempt to acquire Everton Football Club failed last year. The FBI described Wander’s financial activities as creating an illusion of stability, referring to the operation as a “house of cards.”

Legal and Financial Implications

Damien Alfalla, the former CFO of 777 Partners, has already pleaded guilty and begun cooperating with the U.S. government. According to the FBI, 777 Partners still owes hundreds of millions of dollars to its lenders and was declared bankrupt by a British court in 2024.

Flair Airlines: A Discount Airline with Controversies

Flair Airlines operates as a low-cost carrier, boasting a fleet of 14 Boeing 737 aircraft that service North America and the Caribbean. In 2019, 777 Partners acquired a 25% stake in the airline, which it held until May 2024, when ownership was reduced to below 10% amid rising legal issues.

Flair’s chief commercial officer, Eric Tanner, clarified that the airline has no financial ties to 777 Partners, emphasizing independence in operations.

Regulatory Scrutiny and Operational Challenges

In 2021, the Canadian Transportation Agency investigated Flair due to 777 Partners’ significant control over the airline. Although Flair adjusted its structure to maintain its operating license, challenges persisted:

• In 2023, leasing companies seized four of Flair’s aircraft due to missed rental payments.
• The Canadian federal government secured a court order to reclaim over $67 million in unpaid taxes from Flair.

Despite these hurdles, Flair Airlines continues to navigate through its financial landscape, seeking new avenues for stability and growth.