US businessman Josh Wander charged in alleged $500M fraud involving investment in soccer clubs
An indictment has been issued against American businessman Josh Wander for his alleged role in a $500 million fraud scheme related to investments in soccer clubs. This case highlights the risks associated with multi-club ownership in European soccer.
Charges Against Josh Wander
Wander co-founded 777 Partners, a Miami-based firm that invested in various soccer clubs, including:
- Hertha Berlin (Germany)
- Genoa (Italy)
- Standard Liege (Belgium)
- Vasco da Gama (Brazil)
He was indicted on multiple offenses, including wire fraud and securities fraud. The indictment was unsealed in a Manhattan federal court. Many of the charges carry potential penalties of up to 20 years in prison.
Details of the Allegations
The U.S. Attorney for Manhattan, Jay Clayton, stated that Wander allegedly misled investors and lenders. It is claimed he used assets not owned by 777 Partners and falsified financial documents. This conduct reportedly cost investors hundreds of millions of dollars.
Wander’s attorney, Jordan Estes, described the situation as a business disagreement, asserting that it is being presented as a criminal matter. Estes mentioned that Wander is eager to clarify the facts surrounding the case.
Background and Implications
777 Partners sought to establish a substantial presence in soccer, with aims to acquire Everton, a prominent English club. That attempt was thwarted by legal scrutiny and investor challenges.
The soccer investment strategy of 777 Partners came into focus during the COVID-19 pandemic. The firm targeted financially struggling clubs needing recovery from the impacts of empty stadiums.
In light of these developments, UEFA has expressed concerns about the integrity of soccer amidst the growing trend of multi-club ownership. This practice poses risks to the multi-billion dollar player trading market.
Cooperation and Legal Actions
Former 777 Chief Financial Officer, Damien Alfalla, has pleaded guilty and is cooperating with authorities. Additionally, another executive from 777, Steven Pasko, is facing separate civil action from the Securities and Exchange Commission.
The legal landscape surrounding this case continues to evolve, drawing attention from both law enforcement and the global soccer community.
