SEC v. Joshua Wander

Joshua Wander, Steven Pasko, Damien Alfalla, 777 Partners LLC, and 600 Partners LLC allegedly defrauded investors while raising approximately $237 million. According to the SEC’s complaint, between January 2021 and May 2024, Wander, Pasko, and Alfalla misled investors about the companies’ financial condition, and fraudulently induced investments in a $237 million preferred equity offering, by falsely representing that the companies were earning, and would continue to earn, substantial positive net income sufficient to pay investors a 10% annual dividend. Wander and Alfalla allegedly misused a credit facility, resulting in a $300 million overdraw that damaged the companies’ financial prospects. As alleged, Wander also misled investors when he represented that the proceeds of the offering would be used for general corporate purposes, when, in fact, Wander caused the companies to divert approximately $33 million of investor funds to Wander and Pasko personally.

Summary generated from official Securities and Exchange Commission press release