Bonza Co-founder’s Investors Charged with Fraud in the US

The co-founder and chief financial officer of the US-based firm behind the now-defunct Australian low-cost airline Bonza have been implicated in a significant alleged fraud scheme totaling over US$500 million, according to the Federal Bureau of Investigation (FBI).

Following a comprehensive investigation, the FBI has charged Joshua Wander, co-founder of Miami-based 777 Partners, and Chief Financial Officer Damien Alfalla with misappropriating more than US$500 million from the company’s investors and lenders. The authorities have described their actions as creating a “house of cards,” indicating a prolonged period of deceit concerning the company’s finances.

FBI Assistant Director Christopher G. Raia commented that the fraudulent activities stemmed from “fabricated lies of success and doctored financial records.” Reportedly, Wander exploited 777 Partners to mislead private lenders and investors by promising assets the firm did not possess, falsifying bank statements, and misrepresenting the company’s true financial state, as noted by Southern District of New York attorney Jay Clayton.

Homeland Security Special Agent Ricky J. Patel stated, “The defendants created the illusion of stability, resulting in a years-long house of cards.” He emphasized that this alleged scheme was self-serving, diverting funds that were meant for investors and leaving them in dire situations.

Since as early as 2018, Wander began channeling investments into uncertain sectors like streaming content, airlines, and professional sports franchises, including Sevilla FC and Genoa CFC. Investigators pointed out that he knowingly lacked the necessary funds or had already committed them to other lenders, attempting to obscure this reality.

Wander and Alfalla have both been charged with one count of conspiracy to commit wire fraud, one count of wire fraud, and one count of securities fraud, with each charge potentially resulting in a maximum of 20 years of imprisonment. Additionally, Wander faces a charge of conspiracy to commit securities fraud, which could lead to a five-year sentence.

Authorities have indicated that Alfalla is cooperating with the ongoing investigation, while Wander’s attorney, Jordan Estes, has asserted that his client denies all allegations. Estes described the situation as a “business dispute dressed up as a criminal case” and expressed confidence in clearing Wander’s name.

What happened to Bonza?

Bonza commenced operations from Australia’s Sunshine Coast Airport (OOL) in early 2023, aiming to provide affordable flights to regional destinations while strategically avoiding competition with major Australian airlines like Qantas, Jetstar, and Virgin Australia.

By the time of its collapse in April 2024, Bonza had yet to become profitable, relying entirely on 777 Partners for necessary financial support to maintain its Boeing 737 fleet. Unfortunately, the airline’s management, including CEO Tim Jordan, was caught off guard when creditors seized the aircraft, leading to the airline’s downfall amid 777’s financial troubles.

The sudden collapse left hundreds of Bonza employees without pay and affected thousands of ticket holders who lost money on future flights. Some passengers managed to secure refunds through bank charge-back options or by receiving replacement flights from Qantas and Virgin following Bonza’s failure. The Australian government stepped in, utilizing the Fair Entitlements Guarantee to cover the unpaid wages of employees.

In April 2025, the Australian Securities and Investments Commission (ASIC) announced that it would not pursue charges against any former directors of the airline. Despite the recent arrests in the US, the regulator maintains this decision.