777 Partners co-founder pleads guilty in $500m fraud scheme; its Bermuda reinsurer closed in 2024

In context: this report covers a source published on 18 Oct 2026.

Josh Wander, co-founder and former chief executive of investment firm 777 Partners, pleaded guilty on 15 October to one count of wire fraud and one count of securities fraud before US District Judge J. Paul Oetken in Manhattan. Each count has a maximum sentence of 20 years. Under the plea agreement, he will forfeit at least $500m. Sentencing is set for 1 March 2027, Artemis and the Royal Gazette reported.

Wander admitted that in 2021 and 2022, reports from affiliated companies to lenders overstated collateral, and that investors were not told about the collateral problems. More than $350m of pledged assets had already been pledged to other lenders, the Royal Gazette reported. The two reports give different figures for money raised from outside investors in that period: the Royal Gazette put it at more than $100m from the sale of cumulative preferred equity interests, while prosecutors, as quoted by Artemis, said more than $200m was raised through preferred equity in 777 Partners and an affiliated entity. Former chief financial officer Damien Alfalla had already pleaded guilty and is cooperating. 777 Partners filed for bankruptcy in August.

The case has an insurance connection through 777 Re. The Bermuda Monetary Authority intervened at the reinsurer about three years ago, the Royal Gazette reported. The BMA found that it had broken the prudent person principle by investing in affiliated assets. It also found that the reinsurer did not meet its enhanced capital requirement after the parent did not make the capital contributions in its contract. 777 Re stopped insurance business in May 2024, and its Bermuda registration was cancelled four months later.

ILS manager Leadenhall Capital Partners sued 777 entities in 2024. It alleges that collateral pledged under a secured credit facility was double-pledged or did not exist, and the case continues. Leadenhall chief executive Luca Albertini said the plea "reinforces the claims" that the firm made more than two years ago, Artemis reported.