Miami Investment Firm 777 Says Ex-IT Head Stole Data for Lender’s Fraud Suit

Miami investment firm 777 Partners, which is facing several lawsuits by creditors, hit back with its own suit accusing one key lender of hiring 777’s former information technology head to steal data for its litigation.

According to a complaint filed Tuesday in Florida federal court, London-based Leadenhall Capital Partners illegally accessed 777’s computer systems by enlisting forensic accounting firm SAIPH Consulting. That firm was founded by a former executive of 777 affiliate SuttonPark Capital and employs 777’s former IT chief, Noah Davis, 777 alleges.

The lawsuit is the latest twist in the saga of 777, which was founded by Josh Wander and Steve Pasko and owned stakes in several soccer teams and other businesses, including Australian budget airline Bonza. Leadenhall sued 777 in New York in May, claiming that the firm fraudulently borrowed hundreds of millions of dollars against assets that either didn’t exist or were already pledged to other lenders.

According to 777’s suit, Davis, who left the IT role in April and joined SAIPH in Boca Raton, Florida, not only accessed its systems but broke into SuttonPark’s office, to steal laptops.

The suit doesn’t specify what information Davis allegedly stole and how it might help Leadenhall in its lawsuit. Given Davis’ level of access, 777 said it may never fully know “what information he may have reviewed, copied, altered, or otherwise interfered with, and for what purposes.”

In addition to Leadenhall, 777’s suit also named Davis, SAIPH and its founder, Paul Kosinski as defendants. SAIPH and Kosinski declined to comment. Davis didn’t respond to requests for comment.

Targeted Incursions

Leigh Nathanson, a lawyer for Leadenhall, dismissed the suit as “the latest brazen attempt” by 777 to frustrate its attempts to secure the remaining collateral and expressed confidence in the strength of the New York suit. “We will continue to take all appropriate legal actions to maximize recovery for our investors,” he said.

The firm’s finances were thrust into the spotlight last year when it moved to acquire UK Premier League soccer team Everton FC. That deal later fell apart after the league raised questions about 777’s funding.

Several other creditors have sued 777, though mostly for smaller amounts than Leadenhall. Another lender, Obra Capital, filed suit in March, claiming it was still owed $22.4 million.

In the Florida suit, 777 said it was vigorously contesting Leadenhall’s claims and accused the lender of engaging in fraud itself to try to gain an edge in the New York case. Davis’ incursions into its systems targeted databases and other information he thought might help Leadenhall in its litigation, 777 alleges. Davis also allegedly accessed Pasko’s email account and tried to transfer information from it.

Laptop Bags

Davis was “not content with merely virtually breaking into plaintiffs’ computer systems,” 777 claims, and illegally entered SuttonPark’s office on Sept. 5. There, he allegedly filled two large bags with laptops and other equipment.

Leadenhall’s suit also named another lender to 777, Advantage Capital Holdings LLC, as a defendant. According to Leadenhall, Advantage, also known as A-Cap has lent more than $2 billion to 777 and has “had the right to control 777 Partners’ operations.”

A-Cap has denied the allegation. “A-Cap, similar to Leadenhall Capital, serves as a lender to 777 – there are no ownership ties,” a representative said in response to Leadenhall’s suit in May. “The key distinction lies in the fact that A-Cap holds senior rights to collateral associated with 777.”

In May, A-Cap appointed Moelis & Co. to evaluate a range of potential options for 777’s football holdings, including possible asset sales.

The case is 777 Partners v. Leadenhall Capital Partners, 24-cv-81143, US District Court, Southern District of Florida (West Palm Beach).