Former 777 Partners co-founder charged over alleged fraud involving airline stakes

Joshua Wander, co-founder of the failed US investment company 777 Partners, has been charged with fraud, according to Australian media reports. Lenders and investors are said to have lost almost 500 million dollars (around 430 million euros) through the firm's dealings.

Prosecutors allege that Wander put funds into risky holdings in airlines and sports clubs, outside their intended purpose. More than 350 million dollars in assets are also said to have been used repeatedly as collateral, and bank statements allegedly manipulated. The company's former finance chief, Damien Alfalla, has already pleaded guilty and is cooperating with investigators.

Aviation was a large part of 777 Partners' business. It owned the Australian low-cost carrier Bonza, which had to stop operating after its aircraft were repossessed, and held a stake in Canada's Flair Airlines.

Wander faces up to 20 years in prison if convicted. The allegations have not been proven in court.