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777 Partners Accused Of $600 Million Fraud In Lawsuit

By Nithya Bose in Business News, posted May 6, 2024

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.

The case also poses a potential risk to the global soccer market.

777 Partners holds ownership interests in several soccer clubs across Australia, Brazil, Belgium, France, and Germany, with outstanding debts at each.

Lawsuit raises doubts about Everton purchase and other soccer club ownership

Named in the lawsuit are 777 Partners itself, its two principals, Steven Pasko and Josh Wander, and their major financier Kenneth King and his company, ACAP.

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ACAP, however, has refuted Leadenhall's claims as unfounded, although it acknowledged having superior rights over the collateral involved.

The lawsuit accuse 777 Partners of duplicitous financial practices after an anonymous tip led Leadenhall to discover that pledged assets were either non-existent or double-pledged.

During discussions to resolve these issues, Wander admitted to the mishandling of assets, referring to it as an “embarrassing mistake.”

The international implications of these allegations are already visible.

Fans of another 777-owned club, Red Star F.C. in Paris, recently protested by distributing fake banknotes featuring Wander’s image.

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