At a glance
- Under the plea agreement, he forfeits at least $500 million.
- Wander said in 2021 and 2022 a 777 Partners affiliate submitted reports to lenders that overstated collateral and that collateral issues were not disclosed to investors.
- For allocators with ILS or reinsurance exposure, the case poses a concrete due-diligence question: how much of a ceding reinsurer's asset base sits with affiliates, and whether the parent's capital commitments are contractual.
Josh Wander, cofounder of 777 Partners, pleaded guilty to wire fraud and securities fraud in a scheme that took at least $500 million from lenders and investors, the Royal Gazette Bermuda Re reported on Oct. 19. Under the plea agreement, he forfeits at least $500 million.
Wander said in 2021 and 2022 a 777 Partners affiliate submitted reports to lenders that overstated collateral and that collateral issues were not disclosed to investors. "At the time that I did these things I knew what I was doing was wrong and I am deeply sorry for my conduct," he told the court, according to the report.
For allocators with ILS or reinsurance exposure, the case poses a concrete due-diligence question: how much of a ceding reinsurer's asset base sits with affiliates, and whether the parent's capital commitments are contractual. Cat bond funds, sidecar participations and private ILS vehicles take exposure to a ceding balance sheet; Bermuda's actions against 777 Re show what happens when the owner's promise to fund that balance sheet is not kept.
What Bermuda found
The report said the Bermuda Monetary Authority intervened at 777 Re — a reinsurer whose ultimate backer was 777 Partners — three years before the plea, citing concerns about governance, risk management and decision-making. It later found the reinsurer acted contrary to the prudent person principle in related-party investments and failed to meet enhanced capital requirements after its parent missed contractual capital contributions. The regulator barred 777 Re from writing new business and ordered it to reduce affiliated investments through asset sales and restructuring; the reinsurer ceased conducting insurance business in May 2024 and its Bermuda registration was cancelled four months later.
Manhattan US Attorney Jamie McDonald said Wander double-pledged assets, pledged fictitious assets, lied about the company's financial condition and falsified bank statements to obtain lender funds, then used the money for purposes lenders never permitted, including paying for 777's portfolio of professional soccer clubs.
Wander co-founded 777 Partners with Steven Pasko in May 2015 to underwrite and finance structured settlements; the firm became one of the largest buyers of such products in the secondary market. Wander's sentencing is set for March 1 in Manhattan, where each count carries a maximum of 20 years.
Reported by the Insurance-Linked & Specialty desk from Royal Gazette Bermuda Re. Published . Corrections