Amid the turmoil in traditional banking, an obscure but adjacent alleged fraud scandal also came to a head on Thursday. Josh Wander, the insurance and investment whizz kid who co-founded 777 Capital, was indicted by federal prosecutors, formally accused of criminal double-pledging. According to prosecutors, he obtained cash from his private capital lenders by pledging assets he simply did not possess, and used the monies to acquire football clubs, among other things. Wander has denied wrongdoing, but the blow-up of 777 Capital casts a shadow over the nascent model of private equity-owned life insurance.