Federal prosecutors say a high-flying investment company used fraud to finance the purchase of at least 38 new Boeing 737 MAX aircraft in 2021 and 2022 and also took options to buy 96 more. According to the Seattle Times, Joshua Wander, a founder of 777 Partners, has been charged with wire and securities fraud surrounding the company’s investment in two low-cost carrier startups, Flair Airlines in Canada and Bonza Airlines in Australia. “Wander used his investment firm, 777 Partners, to cheat private lenders and investors out of hundreds of millions of dollars by pledging assets that his firm did not own, falsifying bank statements and making other material misrepresentations about 777’s financial condition,” U.S. Attorney Jay Clayton said in a statement to the Times.
Bonza has since gone under, but Flair Airlines continues to operate domestic and vacation flights in Canada, even though it had several of its MAX aircraft that had been supplied by lease companies repossessed. Flair is locked in legal battles with the lessors over that incident. 777 Partners went bankrupt a year ago and owes hundreds of millions of dollars, the Times quoted the FBI as saying.
I remember someone saying, if you ever want to find fraud look at new companies buying jets. This takes it to a whole new level!