The co-founder of the company behind the now-defunct budget airline Bonza has been charged by U.S. authorities in connection with an alleged fraud scheme involving over $500 million. Bonza, which began operations on the Sunshine Coast in early 2023, aimed to provide affordable flights between regional destinations. The airline was fully funded by U.S. private equity firm 777 Partners, which supplied aircraft and ongoing financial support. 777 Partners generated revenue through intricate insurance and reinsurance strategies and co-owned a Canadian budget airline while also investing in several prominent overseas soccer clubs.

However, 777 Partners faced significant legal challenges early last year, leading to Bonza's downfall. In April 2024, Bonza entered administration after creditors of 777 seized its planes, effectively grounding the airline overnight.

Following an extensive investigation, the FBI has charged Joshua Wander, co-founder of 777 Partners, and Chief Financial Officer Damien Alfalla with stealing more than $500 million from the company's lenders and investors. Authorities allege that Wander and Alfalla misappropriated funds and misled investors over several years, characterizing the operation as a "house of cards."

FBI Assistant Director Christopher G. Raia stated that the theft was executed through "fabricated lies of success and doctored financial records." According to Southern District of New York Attorney Jay Clayton, Wander allegedly exploited 777 Partners to defraud private lenders and investors by pledging assets that the firm did not own, falsifying bank statements, and making other significant misrepresentations about the company's financial status.

Homeland Security Special Agent Ricky J. Patel described the alleged scheme as self-serving, stating, "This alleged scheme was self-serving, siphoning funds meant for victims and leaving investors and lenders holding the bag."

In addition to wire fraud, both Wander and Alfalla face charges of conspiracy to commit wire fraud and securities fraud, each carrying a maximum prison sentence of 20 years. Investigators have indicated that Alfalla is cooperating with the government.

Tim Jordan, the former CEO of Bonza, declined to comment and is not facing any charges. Earlier this year, the Australian corporate regulator announced it would not pursue legal action against Bonza's directors. At the time of its collapse, Bonza was not yet profitable and relied entirely on 777 Partners for funding.

The sudden seizure of aircraft left senior Bonza executives shocked, resulting in hundreds of employees going unpaid and thousands of passengers losing money on future flights. The federal government's Fair Entitlements Guarantee covered most of the unpaid wages, while many passengers received refunds through bank charge-back schemes or alternative flights provided by Qantas and Virgin.