Everton takeover: the $600m fraud claims against 777 Partners and what they could mean for club

The US investment group attempting to complete a takeover of Everton has been accused of running a complex “pattern of fraud” to the tune of hundreds of millions of pounds.

Court papers allege a web of intrigue, putting forward claims that 777 Partners misled lenders by securing huge loans against assets already pledged in other agreements or which, in some cases, did not exist.

The accusations, filed by London-based Leadenhall Capital, raise further questions over not just the business practices of 777 Partners, but also the group’s ability to conclude its takeover of Everton and, even then, to continue to fund a club steeped in debt.

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As of Monday, 777 Partners had not publicly responded to the allegations, while Advantage Capital Holdings - known as ACAP and described in the papers as the “puppeteer” controlling 777 Partners - said the claims were “sensational and unfounded” in a statement released to the New York Times. ACAP added it would vigorously defend itself against them

What are the allegations?

The legal action, submitted to a New York court by Leadenhall on Friday, is a civil suit that alleges 777 Partners misled the company in order to borrow vast sums of money. It claims those loans were secured against assets valued at more than $350m - including assets that had either been used as collateral elsewhere, did not exist, or were not controlled by the group.

Leadenhall, which states it is owed $600m by 777 Partners, said it first became aware of these concerns through a tip-off from an anonymous