Founder of Flair Airlines Investor Charged in US$500 Million Fraud
by Bruce Parkinson
Regulatory scrutiny may have helped Flair Airlines dodge a bullet.
Joshua Wander, co-founder of Miami-based investment firm 777 Partners, which once owned 25% of Canada’s Flair Airlines, has been charged with wire and securities fraud in what federal prosecutors describe as a US$500 million scheme to deceive lenders and investors through falsified financial statements and double-pledged assets.
According to ch-aviation, Wander, 44, surrendered to federal agents and appeared in the US District Court for the Southern District of New York in Manhattan on October 16, according to a statement issued by the Federal Bureau of Investigation (FBI) New York Press Office.
He faces multiple counts of wire and securities fraud, each carrying potential prison terms of up to 20 years. The firm’s former chief financial officer, Damien Alfalla, pleaded guilty last week and is cooperating with investigators.
Prosecutors allege Wander and others at 777 Partners misled lenders by pledging assets the firm did not own, falsifying bank records, and diverting restricted funds to bankroll risky ventures, including with sports teams and airlines.
777 Partners initially financed and supplied B737-8 MAX aircraft to Australian low-cost start-up Bonza, which went out of business in April 2024 after just 14 months.
Following Bonza’s collapse, 777 Partners reduced its stake in Flair to less than 10%. This came after four Flair planes were seized in 2023 in a move tied to the 777’s airline investments.
Flair also faced regulatory scrutiny over 777’s involvement with the airline. While the investment met with Canadian foreign ownership limits, there were concerns about how much control 777 Partners wielded.
“Wander used his investment firm to cheat private lenders and investors out of hundreds of millions of dollars,” US Attorney Jay Clayton said in a statement, calling the conduct “a threat to the integrity” of the US financial system.
The alleged fraud, which dates back to 2018, left 777 Partners owing hundreds of millions when a London court declared it bankrupt in 2024.
