Everton’s potential new owners, 777 Partners, and the firm’s co-owner Josh Wander have been embroiled in allegations of a “fraudulent scheme” by a lender in a civil court document filed in New York.
London-based Leadenhall Capital Partners LLP and Leadenhall Life Insurance Linked Investments Fund PLC allege that Wander and 777 pledged over $350 million (£279 million) in assets as collateral for a credit agreement, despite those assets purportedly either not existing or not being owned by Wander’s entities.
The 82-page filing, submitted on Friday as part of Leadenhall’s civil claim, seeks to recover “millions of dollars in damages from a house of cards on the brink of collapse.”
When approached for a response, 777 Partners declined to comment, according to BBC Sport.
This development adds further uncertainty to 777’s ongoing effort to finalize the purchase of Farhad Moshiri’s 94% stake in Everton, a deal agreed upon last September but still pending approval from the Premier League.
The Miami-based investment firm, which already owns stakes in European football clubs such as Genoa, Sevilla, Hertha Berlin, and Standard Liege, as well as Brazilian club Vasco da Gama, has been in talks with a private equity firm specializing in distressed debt to complete the deal.
This week, 777 Partners faced financial difficulties, making a delayed £16 million payment to Everton for operational expenses and having an owned airline enter voluntary administration.
Additionally, 777’s UK public relations advisers have ceased their representation of the company after reported non-payment of fees, and it is uncertain if they will resume their services.
Leadenhall’s US court filing stated: “Everton is the latest shiny object of Wander’s fraudulent scheme, solvency aside.
“Upon information and belief, Wander and [co-owner Steven] Pasko are operating a giant shell game at best, and an outright Ponzi scheme at worst, that takes money in from investors and lenders and shuffles it around to various money-losing alter egos in the enterprise to disguise their true financial condition.”
BBC Sport contacted Wander separately on Saturday for comment is awaiting a response.