The co-founder and chief financial officer of the company behind failed Australian budget airline Bonza have been charged in the United States over an alleged $500 million fraud scheme.
Bonza, which launched in early 2023 offering low-cost flights between regional destinations, was entirely funded by US private equity firm 777 Partners. The firm supplied aircraft and monthly operating capital, but its financial troubles led to Bonza’s sudden collapse in April 2024 when creditors seized its planes, grounding the airline overnight.
777 Partners had built its business through complex insurance and reinsurance deals, and expanded into aviation and sports, co-owning a Canadian budget airline and acquiring several overseas soccer clubs. However, mounting lawsuits in early 2024 exposed cracks in its financial foundation.
Following a major investigation, the FBI charged 777’s Miami-based co-founder Joshua Wander and CFO Damien Alfalla with orchestrating a years-long scheme to defraud lenders and investors. Authorities allege the pair siphoned funds and misled stakeholders with fake financial statements.
FBI assistant director Christopher G Raia described the operation as a “house of cards,” stating the theft occurred “through fabricated lies of success and doctored financial records.”
Bonza’s collapse left thousands of passengers stranded and raised questions about the risks of relying on opaque private equity funding in the aviation sector. The case has drawn international attention, not only for the scale of the alleged fraud but also for its ripple effects across industries.
Tags: Bonza airline collapse, 777 Partners fraud, Joshua Wander FBI charges, Damien Alfalla financial fraud, Bonza Sunshine Coast airline, US$500 million fraud scheme, Bonza administration April 2024, private equity airline funding, FBI investigation 777 Partners, Bonza budget airline failure
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