Bonza owner pleads guilty to $US500 million fraud
Bonza collapsed when 777 Partners hit financial trouble. (Supplied: Bonza)
In short:
The man who bankrolled Australian budget airline Bonza has pleaded guilty to a $US500 million fraud scheme.
American man Joshua Wander was charged by the FBI over a plot to defraud the company's lenders and investors.
Bonza collapsed in 2024 after just a year in the sky.
An American man who bankrolled a failed Australian budget airline has pleaded guilty to a $US500 million ($720 million) fraud scheme.
Bonza collapsed in 2024 after only a year in the skies.
The low-cost carrier was based on the Sunshine Coast and flew passengers to other regional destinations on new 737 planes for cheap fares.
But the airline suddenly ground to a halt when its planes were repossessed after its owner, 777 Partners, fell into financial trouble.
Last year, 777 co-founder and CEO Joshua Wander was charged by US authorities over a $US500 million plot to defraud the company's lenders and investors.
Wander pleaded guilty in a US court overnight.
Joshua Wander pleaded guilty to the fraud charges. (AGIF via AFP: Thiago Ribeiro)
"Wander double-pledged assets, pledged fictitious assets, lied about the financial condition of his company, and even falsified bank statements, all to gain access to his victims' funds," US Attorney Jamie McDonald said.
"He then put those funds to uses that his lenders never permitted, including footing the bill for 777's collection of professional soccer teams.
"Such brazen conduct undermines the integrity of our financial system and will not be tolerated."
The probe was led by the Federal Bureau of Investigation and Homeland Security Investigations.
Prosecutors said Wander hid the fraud by directing 777 employees to digitally alter bank statements to reflect millions of dollars in cash on hand that did not exist.
The US private equity company was the sole backer of Bonza, and owned a Canadian airline too.
777 made its money through complex insurance and reinsurance schemes, and also controlled several major overseas soccer clubs.
Former Bonza CEO Tim Jordan declined to comment and is not accused of wrongdoing.
Last year the Australian corporate regulator said it would not prosecute Bonza's directors.
Wander's two charges each carry a maximum penalty of 20 years in prison.
US authorities said he had agreed to forfeit at least $US500 million in proceeds from his illegal scheme.
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