Former Bonza financiers 777 Partners’ Co-Founder Joshua Wander and Chief Financial Officer Damien Alfalla have been charged by the US Federal Bureau of Investigation (FBI) after allegedly defrauding investors and lenders of USD $500 million (around AUD$771 million).
After a major FBI investigation, Wander and Alfalla were charged with wire fraud, conspiracy to commit wire fraud and securities fraud. These serious charges carry a maximum prison sentence of 20 years each. Alfalla has pled guilty and is cooperating with the US government.
Investigators said Wander and Alfalla siphoned money meant for victims and lied to investors over several years, describing the operation as a “house of cards”.
In a statement, FBI Assistant Director Christopher G Raia said the theft occurred “through fabricated lies of success and doctored financial records”.
The Miami-based private investment company collapsed in October 2024 after several lawsuits. It was forced to divest high-profile international sporting club investments, including a minority share in Melbourne Victory. It also co-owned Canadian low-cost carrier Flair Airlines.
The FBI is investigating whether the Aussie airline was funded by money meant for professional football teams, such as Genoa CFC and Sevilla FC.
Former Bonza CEO Tim Jordan is not accused of any wrongdoing in the matter.
Bonza’s timeline to bust
Bonza launched in January 2023 and was entirely bankrolled by 777 Partners, which provided the budget airline with aircraft and monthly funding.
With a cheeky marketing campaign, irreverent appeal and pledge to connect regional destinations, the fledgling carrier made a splash as Australia’s newest airline when it launched.
It entered voluntary administration in April last year, just 15 months after launching, when creditors seized its aircraft, grounding the airline overnight on 30 April 2024 and blindsiding senior Bonza executives.
Creditors voted to liquidate the airline in July 2024. The collapse meant hundreds of employees went unpaid, while thousands of passengers lost money on future flight bookings.
Airline employees’ unpaid wages were covered through the government’s Fair Entitlements Guarantee, while Qantas, Jetstar and Virgin offered replacement flights for affected passengers.
An ASIC spokesperson said the FBI charges would not trigger the Australian corporate regulator to reopen its investigation.
