Co-founder of Bonza’s financial backers arrested on fraud charges in the US
The co-founder, as well as the chief financial officer of the US company behind failed Australian low-cost airline Bonza, has been charged by the US Federal Bureau of Investigation (FBI) over a US$500 million alleged fraud scheme.
Upon the completion of a major investigation, the FBI has charged Miami-based 777 Partners’ co-founder Joshua Wander (aged 44) and Chief Financial Officer Damien Alfalla with stealing more than US$500 million from the company’s lenders and investors. Investigators say Wander and Alfalla siphoned money away from the company’s accounts and lied to investors over several years, describing the operation as a “house of cards”.
As reported by ABC News in Australia, FBI assistant director Christopher G Raia said in a statement, the theft occurred “through fabricated lies of success and doctored financial records”.
Mr Wander allegedly used 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”, Southern District of New York attorney Jay Clayton said.
Mitchell Hope/ Wikimedia Commons“The defendants put forth an illusion of stability that was a years-long house of cards,” Homeland Security special agent Ricky J Patel said in a statement. “This alleged scheme was self-serving, siphoning funds meant for victims and leaving investors and lenders holding the bag.”
As reported by the BBC, as early as 2018, Wander began investing in “new sectors with less certain cash-flow profiles, including streaming platforms, airlines, and professional sports teams such as Sevilla FC and Genoa CFC”. Investigators said he did this knowing that the Miami-based group either did not have the funds or had already pledged it to other lenders and attempted to conceal this.
Wander, along with Alfalla, has consequently been charged with one count of conspiracy to commit wire fraud, one count of wire fraud, and one count of securities fraud, each of which carries a maximum sentence of 20 years in prison. Wandser has also been charged with one count of conspiracy to commit securities fraud, which carries a maximum sentence of five years in prison.
BonzaUS investigators have said that Alfalla is cooperating with the government and its ongoing inquiries. Wander’s lawyer, Jordan Estes, said Wander denies all the charges, telling Bloomberg, “This is a business dispute dressed up as a criminal case. We look forward to setting the record straight.”
What happened to Bonza?
Bonza launched from Australia’s Sunshine Coast Airport (OOL) in early 2023, offering cheap flights between regional destinations, deliberately avoiding going head-to-head with Australian major carriers Qantas, Jetstar, and Virgin Australia on its core route network.
The airline was not yet profitable when it collapsed in April 2024, instead relying solely on 777 Partners for ongoing funding to keep its small fleet of Boeing 737s in the air. However, Bonza’s management team, including CEO Tim Jordan, was left blindsided when creditors suddenly seized the aircraft in April 2024 as 777’s woes worsened, effectively bringing the airline down.
Bidgee / Wikimedia CommonsWhen Bonza collapsed, hundreds of employees were left unpaid, while thousands of passengers lost money from future flights they had booked. However, some passengers received refunds through bank charge-back schemes or replacement flights offered by Qantas and Virgin following Bonza’s failure. The Australian taxpayer picked up the bill for the employee’s unpaid wages through the Australian federal government’s Fair Entitlements Guarantee.
In April 2025, the Australian Securities and Investments Commission (ASIC) said that it would not be bringing any charges against any of the airline’s former directors. The regulator has said that despite the arrests in the US, it stands by this decision.
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The post Co-founder of Bonza’s financial backers arrested on fraud charges in the US appeared first on AeroTime.
The co-founder, as well as the chief financial officer of the US company behind failed Australian low-cost airline…
The post Co-founder of Bonza’s financial backers arrested on fraud charges in the US appeared first on AeroTime.
