US business news
777 Partners Accused Of $600 Million Fraud In Lawsuit
American investment firm 777 Partners has faced serious allegations of conducting a multi-year fraud scheme involving about $600 million.
This comes when the company is in talks to buy English Premier League club Everton.
The accusations were presented in a lawsuit filed by Leadenhall Capital Partners in a New York federal court on Friday.
Based in London, Leadenhall claims it had provided over $600 million in financing to 777 Partners.
The lawsuit claims the company later found about $350 million of the collateral assets were either not controlled by 777 or had already been pledged to other creditors.
This has raised major doubts about 777 Partners' financial integrity.
The company has consistently declared assets worth $10 billion despite being embroiled in various legal disputes and financial mismanagement accusations over the years.
The ongoing lawsuit jeopardizes 777's attempt to purchase Everton—a deal already hindered by the Premier League's hesitations and Everton's financial difficulties.
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