Potential Everton buyers 777 Partners accused of FRAUD as protracted takeover takes another twist

Co-founders Josh Wander and Steve Pasko are alleged to have pledged more than $350 million in assets that either did not exist or were out of their control, as reported by The Telegraph. Leadenhall Capital Partners LLP and Leadenhall Life Insurance Linked Investments Fund PLC filed the lawsuit in New York on Friday and 777 have been accused of using  “an outright Ponzi scheme”.

The latest crisis to engulf 777 is a huge blow to their aspirations of completing a takeover of Everton, with discussions between the two parties commencing last year. The Toffees are currently owned by Farhad Moshiri, who agreed to sell his 94.1% stake in the Merseyside club last September but has seen the process littered with delays and controversy.The complaint lodged by fellow investment firm Leadenhall against 777 reads: “To induce Leadenhall to fund their operation, Wander, along with his group of alter ego entities, ‘pledged’ over $350 million in assets as collateral to Leadenhall, knowing all along that the assets either did not exist, were not actually owned by Wander’s entities, or had already been pledged to another lender. “Wander has already admitted to rampant and fundamental breaches of the parties’ agreements – the only question now is whether Leadenhall will be able to recover millions of dollars in damages from a house of cards on the brink of collapse.”

777 are already a major player in football club ownership, boasting a portfolio which includes German side Hertha Berlin, Serie A outfit Genoa and Vasco da Gama of Brazil. But they are still awaiting approval from the Premier League to add Everton to their collection.

While the ownership drama goes on behind the scenes, Everton will be focused on a positive end to the season after securing safety. Sean Dyche's side host already relegated Sheffield United next weekend, before a trip to title-chasing Arsenal on the final day.